Actuant Updates Full Year Guidance; Q2 Profit Tops Estimates

(RTTNews) - Actuant Corp. (ATU) announced the company is projecting full year sales to be in the range of $1.135-1.150 billion and EPS of $1.25-1.35 per share. Core sales are expected to decline 4-6% for the fiscal year. Analysts polled by Thomson Reuters expect the company to report profit per share of $1.19 on revenue of $1.16 billion. Analysts' estimates typically exclude special items.

In December 2015, the company projected its fiscal year sales and EPS, to be in the range of $1.165-$1.200 billion and $1.25-1.40 per share, respectively.

The company expects third-quarter sales to be in the $290-300 million range, with EPS of $0.34-0.39 based on a mid-single digit consolidated core sales decline. Analysts polled by Thomson Reuters expect the company to report profit per share of $0.39 on revenue of $305.83 million.

Randal Baker, President and CEO of Actuant, said: "We are currently faced with a difficult set of end market conditions, most notably across commodity driven industries including oil & gas, mining and agriculture. In addition, destocking by various off-highway equipment OEMs is expected to continue as they reduce their inventory. However, sales from our maintenance driven energy offerings and certain other markets such as European truck should continue to grow."

Second quarter net loss was $159.2 million, or $2.70 per share compared to a loss of $64.8 million, or $1.05 per share in the comparable prior year period. Excluding the impairment charges and fiscal 2016 restructuring costs, second quarter fiscal 2016 EPS was $0.21 compared to $0.28 in the comparable prior year period. On average, eight analysts polled by Thomson Reuters expected the company to report profit per share of $0.18 for the quarter.

During the quarter, the company performed an interim impairment review which resulted in a net $169.1 million or $2.87 per share non-cash impairment charge related to the upstream oil & gas exposure within the Cortland and Viking businesses, as well as within the Maximatecc off-highway equipment business.

Consolidated sales for the second quarter were $263 million, 13% lower than the $301 million in the comparable prior year quarter. Core sales declined 8% while foreign currency exchange rate changes reduced sales 5%. Analysts expected revenue of $267.64 million for the quarter.