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TheStreet Open House

Actuant Reports Second Quarter Results

Stocks in this article: ATU

Sales for the six months ended February 28, 2013 were $748 million, 3% below the $771 million in the comparable prior year period. Excluding the 4% impact of acquisitions, year-to-date core sales declined 7%. Earnings and EPS for the six months ended February 28, 2013 were $64.8 million, or $0.87 per diluted share, compared to $69.3 million, or $0.94 per diluted share for the comparable prior year period.

Segment Results

 

Industrial Segment

(US $ in millions)

 
  Three Months Ended   Six Months Ended
February 28,   February 29, February 28,   February 29,
2013 2012 2013 2012
Sales $99.0 $98.3 $200.1 $198.6
Operating Profit $26.4 $26.7 $53.4 $54.6
Operating Profit % 26.6% 27.1% 26.7% 27.5%
 

Second quarter fiscal 2013 Industrial segment sales were $99 million, 1% higher than the prior year. Despite the difficult prior year comparison, core sales increased 1% driven by higher global Integrated Solutions activity. North America and the AsiaPac region saw the strongest growth, with year-over-year core sales declines in Europe and China. Second quarter operating profit margin of 26.6% was in line with expectations and modestly lower than the prior year due to unfavorable mix.

Energy Segment

(US $ in millions)

 
  Three Months Ended   Six Months Ended
February 28,   February 29,

February 28,

  February 29,
2013 2012

2013

2012
Sales $80.8 $78.9 $171.6 $159.4
Operating Profit $9.7 $11.6 $25.1 $24.8
Operating Profit % 12.0% 14.7% 14.6% 15.6%
 

Fiscal 2013 second quarter year-over-year Energy segment sales increased 2% to $81 million. Excluding the 3% impact from acquisitions, core sales declined 1% from the prior year’s robust levels. Hydratight’s core sales increased during the quarter reflecting solid MRO spending in oil & gas, partially offset by difficult comparisons to last year’s strong North American nuclear maintenance activity. Cortland had a core sales decline which was primarily due to lower activity in non-energy markets such as defense, as well as modest push-outs of energy related business. Second quarter operating profit declined despite the modest growth in revenue due to an approximate $2.5 million earn-out reserve reduction in the prior year.

Electrical Segment

(US $ in millions)

 
  Three Months Ended   Six Months Ended
February 28,   February 29, February 28,   February 29,
2013 2012 2013 2012
Sales $69.9 $77.1 $139.3 $159.9
Operating Profit $5.1 $5.8 $12.9 $10.8
Operating Profit % 7.3% 7.5% 9.3% 6.7%
 

Electrical segment fiscal 2013 second quarter sales were $70 million, 9% lower than the comparable prior year quarter. Similar to the first quarter, the core sales decline was primarily attributable to lower solar inverter shipments and industrial transformer demand. The marine and internet markets generated modest core sales increases in the quarter. Second quarter operating profit margin was essentially unchanged from the prior year despite the impact of lower volumes, due to favorable mix and the net benefit of restructuring actions.

Engineered Solutions Segment

(US $ in millions)

 
  Three Months Ended   Six Months Ended
February 28,   February 29, February 28,   February 29,
2013 2012 2013 2012
Sales $120.7 $123.6 $236.6 $252.9
Operating Profit $8.3 $13.3 $15.9 $32.3
Operating Profit % 6.9% 10.7% 6.7% 12.8%
 

Second quarter fiscal 2013 Engineered Solutions segment sales decreased 2% from the prior year to $121 million. Excluding the 10% benefit from acquisitions, year-over-year core sales declined 12%, a sequential improvement from the 17% decline last quarter. Second quarter sales continued to be impacted by OEM destocking in the heavy-duty truck, off-highway equipment and auto markets. Demand in the global agriculture market was flat with the prior year. Second quarter operating profit margin declined year-over-year, but was up sequentially. The impact of lower volumes was partially offset by the benefit of cost reduction actions taken in the segment.

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