Actuant Corporation (NYSE: ATU) today announced results for its third quarter ended May 31, 2013.
- Delivered third quarter diluted earnings per share (“EPS”) from continuing operations of $0.62, 22% higher than the prior year (excluding prior year debt refinancing costs - see attached reconciliation of earnings.)
- Sales from continuing operations of $344 million, approximately level with the prior year. Excluding the 3% contribution from acquisitions and -1% foreign currency impact, core sales declined 2% with two of the three segments posting core sales growth.
- Robust cash flow from operations of $76 million.
- Announced intent to divest the Electrical segment to refocus on the remaining businesses where Actuant is well positioned to build on identified secular growth trends and emerging market opportunities.
- Introduced full year fiscal 2014 outlook with sales and EPS from continuing operations expected to be $1.315-$1.340 billion and $1.95- $2.05, respectively.
Robert C. Arzbaecher, Chairman and CEO of Actuant commented, “As expected, the third quarter represented an inflection point for Actuant as we delivered a 22% increase in EPS from continuing operations and improved sequential sales and profit margins. Solid core growth was achieved in both the Industrial and Energy segments, and the sequentially improved Engineered Solutions sales signal OEM destocking efforts are abating. Due to weak economic conditions, we continue to experience subdued activity in our global industrial markets and inconsistent demand. However, we did a good job balancing cost reduction actions and growth investments, as evidenced by our 19.6% EBITDA margins. Our third quarter EPS also benefitted from both lower interest expense and an effective income tax rate. We have asked a lot of our employees this year and I want to thank our world-class global team for their efforts in delivering the results.”