Actuant Slips To Loss In Q4; Provides Q1, FY Outlook

(RTTNews) - Actuant Corp. (ATU) reported that its net loss for fourth quarter of fiscal year 2017 were $98.8 million or $1.65 per share, compared to earnings of $17.4 million or$0.29 per share in the comparable prior year quarter.

The latest-quarter result included restructuring charges of $1.3 million net of tax or $0.02 per share, as well as $108.9 million in impairment and divestiture charges related to the pending sale of the Viking SeaTech business, net of tax ($1.82 per share).

The prior year results included restructuring charges of $2.1 million net of tax or $0.03 per share and a $1.6 million, or $0.02 per share after-tax gain on the Sanlo product line divestiture.

Excluding items, adjusted EPS for the fourth quarter of fiscal 2017 was $0.19 compared to $0.30 in the comparable prior year period.

Consolidated sales for the fourth quarter were $276 million, flat with the prior year's sales level. Core sales were also flat as the benefit from foreign currency of 1% was offset by a 1% divestiture impact.

First quarter guidance, which includes Viking sales and operating losses for the entire fiscal quarter, incorporates sales in the $260 million - $270 million range on a flat to 2% core sales decline, and EPS of $0.14-$0.19, excluding restructuring and divestiture charges. The first quarter of fiscal 2018 is expected to contain the most difficult energy maintenance comparable of the year.

The company currently projects full year fiscal 2018 sales in the range of $1.100 billion - $1.130 billion, reflecting a core sales increase of flat to 2%.

Adjusted EPS is expected to be in the range of $1.05-1.15, reflecting modestly higher sales and the benefit of the restructuring actions offset by a higher effective tax rate (estimated in the range of 5-10%) and higher incentive compensation.