Fiscal 2013 third quarter year-over-year Energy segment sales increased 3% to $99 million. Excluding the negative 2% impact from foreign currency translation, core sales were 5% higher than the prior year’s robust levels. Deep water related umbilical, cable and rope revenues grew double digits with strong market demand and catch up of deferred shipments from earlier in the year. Cortland’s non-energy markets, such as defense, continued to experience weak activity levels. Hydratight’s core sales also grew during the quarter reflecting solid MRO spending in global oil & gas, partially offset by difficult comparisons given last year’s strong North American nuclear maintenance activity. Third quarter operating profit increased 70 basis points year-over-year, primarily the result of the higher volumes.
Engineered Solutions Segment
(US $ in millions)
|Three Months Ended May 31,||Nine Months Ended May 31,|
|Operating Profit %||9.5%||13.5%||7.7%||13.0%|
Third quarter fiscal 2013 Engineered Solutions segment sales decreased 2% from the prior year to $134 million. Excluding the 8% net benefit from acquisitions/divestitures, year-over-year core sales declined 10%. Third quarter sales continued to be impacted by difficult comparisons in the North American heavy-duty truck, agriculture and global off-highway equipment markets. While convertible auto demand in Europe remained weak, European heavy-duty truck sales inflected in the quarter and were higher year-over-year. Third quarter operating profit margin declined due primarily to the impact of lower volumes, unfavorable sales mix and restructuring costs.