CHICAGO, Oct. 22, 2012 /PRNewswire/ --
Highlights (Continuing Operations):
- Inbound orders and backlog increased substantially both year-over-year and sequentially
- Segment operating profit margin of over 8 percent expanded approximately 100 basis points
- Strong cash flow generated from operating activities resulted in record low level of debt, net of cash, of approximately $92 million at quarter-end
- Diluted earnings per share from continuing operations expected to be $0.19 to $0.21, as revenue declined due to a shift in delivery schedules of several orders
- Updated full-year diluted earnings per share guidance to $1.22 to $1.28
JBT Corporation (NYSE: JBT), a leading global technology solutions provider to the food processing and air transportation industries, today announced preliminary third quarter 2012 results.
The Company expects third quarter inbound orders to be approximately $260 million and backlog to be approximately $345 million, representing a year-over-year increase of 22 percent and 11 percent, respectively, and a sequential increase of 7 percent and 12 percent, respectively.Third quarter revenue is expected to be approximately $205 million, a decline of 11 percent from the prior-year quarter primarily due to shifts in delivery schedules of several orders. Segment operating profit is expected to be approximately $17 million, an increase of 3 percent from the prior-year period. Segment operating profit margin of over 8 percent expanded approximately 100 basis points, largely driven by gross margin expansion across both JBT FoodTech and JBT AeroTech. Despite the improved performance at the segment level, consolidated operating income for the third quarter is expected to be approximately $10 million, down 28 percent from last year's third quarter. This decrease is largely attributable to almost $4 million in mark-to-market gains reported on foreign currency transactions in the third quarter of last year, relative to a small loss expected in the third quarter of this year. Third quarter diluted earnings per share from continuing operations is expected to be in the range of $0.19 to $0.21, including a lower tax rate in the quarter, compared to $0.28 in the third quarter of 2011. Year-to-date cash generated from operating activities is expected to total approximately $69 million, resulting in a record low level of debt, net of cash, of approximately $92 million at quarter-end. "We are pleased with the margin expansion, strong cash flow and healthy order activity in the third quarter, as well as our backlog position at quarter-end. Unfortunately, the shift in delivery schedules resulted in earnings that fell short of our expectations," said Charlie Cannon, Chairman and Chief Executive Officer. "We are projecting a record fourth quarter performance given current backlog position and continued savings from our cost reduction initiatives. However, as a result of lower than previously forecasted sales volume and further shifts in delivery schedules to 2013 of certain large orders, we are updating our full-year earnings guidance range to $1.22 to $1.28," concluded Cannon. The above preliminary results are subject to completion of the Company's normal quarter-end accounting procedures, including a review by the Company's independent registered public accounting firm, which could result in variations from these preliminary estimates.