Actuant Q3 Profit Down; Cuts FY15 Outlook - Quick Facts

(RTTNews) - Actuant Corp. (ATU) reported that its net earnings for fiscal 2015 third quarter declined to $38.0 million or $0.63 per share, from $50.6 million and $0.70 per share in the prior year quarter.

Both quarterly periods benefited from lower than normal income tax expense reflecting tax planning, the resolution of income tax audits, and lapsing of certain tax statutes of limitations.

Consolidated sales for the third quarter were $320 million, 15% below the $378 million in the comparable prior year quarter. Core sales declined 8%, unfavorable foreign currency exchange rate changes negatively impacted sales by 7% and the net impact of acquisitions and divestitures was neutral.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.52 per share and revenues of $322.08 million for the quarter. Analysts' estimates typically exclude special items.

The company expects fourth quarter sales to be in the range of $290 million - $300 million, and earnings per share of $0.26-0.31, reflecting an assumed core sales decline of approximately 7%-9%. Analysts expect the company to report earnings of $0.46 per share and revenues of $306.31 million for the fourth-quarter.

The company's revised full year fiscal 2015 outlook is for sales in the $1.24 billion - $1.25 billion range, and earnings, excluding the second quarter impairment charge, of $1.55- $1.60 per share. Wall Street currently is looking for fiscal year 2015 earnings of $1.65 per share on annual revenues of $1.26 billion.

The company said in March that it expected sales to be in the range of $1.245 billion- $1.265 billion, and earnings per share, excluding the impairment charge, of $1.65- $1.75 per share for fiscal 2015.

"We are clearly seeing the benefit of the cost reduction actions we have taken to date, but the uncertainty, severity and duration of end market weakness is causing us to review additional actions to reduce costs to mitigate the impact of the lower revenues. Despite the resultant benefits, we expect continued pressure on profit margins for the balance of the calendar year due to incremental downsizing costs, lower production levels reflecting reduced demand and inventory reduction efforts, as well as decreased utilization of Energy segment rental fleets and technician teams," the company said today.