SECURITY: ATU (Common)   EXCHANGE: New York Stock Exchange

Actuant encompasses a broad range of niche consumer and industrial manufacturing and distribution operations. Our businesses are focused on two main strategies – position/motion control and branded tools.

Actuant Reports Second Quarter Results; Updates Fiscal 2017 Guidance
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MILWAUKEE--(BUSINESS WIRE)--Mar. 22, 2017-- Actuant Corporation (NYSE: ATU) today announced results for its second quarter ended February 28, 2017.


Consolidated sales were 2% below the comparable prior year quarter with acquisitions net of divestitures a 2% benefit and foreign currency rate changes a 1% headwind. Second quarter core sales were down 3% with a return to core growth in both the Industrial and Engineered Solutions segments, offset by difficult market conditions in the Energy segment.
GAAP diluted earnings per share (“EPS”) were $0.08 in the second quarter of fiscal 2017 versus $(2.70) in the prior year. Adjusted EPS was $0.11 excluding second quarter fiscal 2017 restructuring charges of $0.03 per share (see Consolidated Results below and the attached reconciliation of earnings).
Maintained fiscal 2017 full year sales guidance of $1.075-1.125 billion and narrowed adjusted EPS guidance to a range of $1.10-1.20 per share (excluding restructuring and transition charges).
Randy Baker, President and CEO of Actuant commented, “We delivered our financial commitments for the second quarter, with generally stable end market conditions and progress across a number of key strategic initiatives. Core sales in both Industrial and Engineered Solutions turned positive for the first time in approximately two years. Energy comparisons and market conditions were difficult in both maintenance and offshore capex related areas. As we pivot the organization more toward growth, we are increasing investments in new products, commercial effectiveness and growth regions, which in the short term limit margin expansion. Adjusted EPS of $0.11, excluding restructuring, was directly in line with our guidance. Normal seasonal cash flow and debt leverage provide us adequate liquidity. In summary, I’m pleased with the progression of our efforts and appreciative of the execution by Actuant employees around the globe.”

Consolidated Results

Consolidated sales for the second quarter were $259 million, 2% lower than the $263 million in the prior year. Core sales declined 3% while foreign currency rate changes reduced sales 1% and net acquisitions/divestitures were a 2% sales benefit. Fiscal 2017 second quarter net earnings and EPS were $5.1 million, or $0.08, compared to a net loss of $159.2 million and $2.70, respectively, in the comparable prior year quarter. Fiscal 2017 second quarter earnings included restructuring charges of $2.1 million or $0.03 per share. Second quarter 2016 results included $3.6 million or $0.04 per share of restructuring charges and $186.5 million or $2.86 per share of impairment charges. Excluding these items, adjusted EPS for the second quarter of fiscal 2017 was $0.11 compared to $0.21 in the comparable prior year period (see attached reconciliation of earnings).

Sales for the six months ended February 28, 2017 were $525 million, 8% lower than the $568 million in the prior year. Excluding the 1% negative impact of foreign currency rate changes and 2% benefit of net acquisitions/divestitures, fiscal 2017 year-to-date core sales decreased 9%. Fiscal 2017 year-to-date net earnings and EPS were $10.0 million and $0.17, respectively. The comparable fiscal 2016 year-to-date net loss was $143.7 million or $2.43 per share. Excluding restructuring charges in both years, the 2017 director and officer transition charges, and fiscal 2016’s impairment charge, fiscal 2017 first half adjusted EPS was $0.31 compared to $0.52 in the comparable prior year period (see attached reconciliation of earnings).

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