Industrial products and systems manufacturer
reported on Dec. 18, 2008, its first-quarter fiscal 2009 net earnings declined 57.7%, hurt by a decrease in total revenue and inclusion of a noncash impairment charge of $26.60 million, or 26 cents per share and a restructuring charge of $5.50 million or 9 cents per share.
Net income plunged to $11.60 million or 19 cents per share from $27.43 million or 43 cents per share a year ago. Adjusted EPS was 45 cents, which missed the most recent consensus estimate of 46 cents per share.
Revenue declined 8.5% to $379.98 million from $415.14 million. Lower sales were due to a negative 3% effect from favorable foreign currency translations, while acquisitions contributed 6% to revenue growth, which was offset by an 11% decline in core sales
Segment-wise, industrial sales rose 20% to $164.51 million, driven by strong global demand for joint integrity maintenance products and services for the oil & gas and power generation markets, as well as for high-force hydraulic tools. Electrical sales declined 23.9% to $102.00 million, reflecting continued weak demand from retail, marine and transformer customers.
Systems sales dipped 24.4% to $85.35 million, hurt by weak consumer demand from the company's RV, European truck and automotive customers. Engineered product sales descended 9.8% to $28.13 million, due to lower volumes.
Looking ahead, Actuant reiterated its full-year revenue estimate to be in the range of $1.50 billion to $1.55 billion and earnings of $1.60 to $1.80 per share (excluding the RV asset impairment charge), respectively. For second quarter 2009, earnings are expected to be in the range of 20 cents to 28 cents per share on revenue between of $335 million and $355 million.
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