L.B. Foster Turns To Profit In Q2 - Quick Facts

(RTTNews) - L.B. Foster Co. (FSTR), a manufacturer, fabricator, and distributor of products and services for rail, construction, energy and utility markets, reported that its second quarter 2013 net income was $7.30 million or $0.71 per share, compared to net loss of $2.07 million or $0.20 per share in the year ago quarter.

Second quarter income from continuing operations was $7.3 million or $0.71 per share compared to a loss from continuing operations of $3.3 million or $0.33 per share last year. Excluding concrete tie charges from the prior year period, second quarter earnings from continuing operations would have been $8.7 million or $0.86 per share.

The Company said it sold the assets and liabilities of its railway load securement business during the second quarter of 2012 to Holland L.P. The operating results of this division as well as a $3.5 million pre-tax gain on the sale were classified as discontinued operations.

Second quarter bookings were $119.7 million, a 43.2% decline from the prior year second quarter which represented a record quarter for order entry. During the prior year period, the Company received the $60 million Honolulu Transit order, and orders for concrete ties and coated pipe products were very strong. June 2013 backlog was $220.3 million, 12.6% lower than June 2012.

Net sales for the quarter were $149.94 million, down about 8.1% from $163.18 million in the prior year quarter due to a 10.3% decline in Rail segment sales and an 8.7% reduction in Construction segment sales, partially offset by a 10.0% increase in Tubular segment sales.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.97 per share and revenues of $175.00 million. Analysts' estimates typically exclude special items.

Orders for the Tubular segment reversed course in the second-quarter as customers reacted to changing steel prices, inventory levels, and natural gas prices. As a result of the reduction in orders and backlog levels, the company said it revised its 2013 forecast downward.

The company said that the changing mix in order patterns and resulting sales forecast, coupled with the varied profitability of its business segments, has led them to revise its full year forecast. Sales are expected to finish the year between $600 and $610 million. Pre-tax profit margins will decline largely due to the reduced Tubular segment volume Pre-tax profit is expected to be between $42.4 million and $44.0 million. This should result in earnings per share in the range of $2.70 to $2.80.

Analysts expect the company to report earnings of $3.11 per share and revenues of $632.90 million for fiscal 2013.