Actuant Corp. Cuts FY17 Guidance - Quick Facts

(RTTNews) - Actuant Corp. (ATU) announced the company currently expects fiscal 2017 adjusted EPS to be $0.82-0.87, down from prior guidance of $1.10-1.20, as lower energy maintenance volumes and unfavorable segment sales mix weigh on margins. The company now expects full year sales to be within the range of $1.080-1.090 billion. In March, the company projected its full-year sales to be in a range of $1.075 billion to $1.125 billion. Free cash flow is projected to be in the $65-70 million range in fiscal 2017, down from the previous range of $85-95 million.

Third-quarter net earnings and EPS were $22.5 million, or $0.37, compared to $21.2 million and $0.36, respectively, in the comparable prior year quarter. Excluding items, adjusted EPS for the third quarter of fiscal 2017 was $0.32 compared to $0.40 in the comparable prior year period.

Consolidated sales for the third quarter were $295 million, 3% lower than the $305 million in the prior year. Core sales were flat as foreign currency rate changes reduced sales 2% and net acquisitions/divestitures were a 1% sales headwind.

Randy Baker, CEO of Actuant, said, "We had many positive market and strategy execution advancements in the third quarter, but they were not able to offset the difficult conditions that persist within the global energy market. Core sales in the Energy segment declined double digits given continued weak offshore upstream spending, and deterioration in maintenance related activity as customers strive to reduce cash outflows. Adjusted EPS of $0.32, excluding restructuring and one-time tax benefits, was below our original guidance as previously communicated, with weak energy maintenance activity and unfavorable segment mix being the primary drivers."