Powell Industries Cuts FY14 Outlook

(RTTNews) - Powell Industries, Inc. (POWL) on Thursday lowered its fiscal 2014 revenues guidance to a range of $630 to $640 million from its previous guidance of $650 to $675 million, citing mainly scheduling delays in its U.S. businesses.

The company also said it now expects fiscal 2014 earnings from continuing operations to be $1.25 to $1.45 per share, compared to its previous guidance of $2.15 to $2.40 per share due to the higher costs and scheduling delays in its U.S. businesses and as well as the higher costs in Canada.

Analysts polled by Thomson Reuters currently expect the company to earn $2.17 per share on revenue of $663.53 million for the fiscal year 2014.

The company noted that it has experienced start-up productivity issues arising from its May implementation of new business systems and tools, a scalable infrastructure investment designed to drive process efficiency across the organization.

The company said it began experiencing schedule delays and higher than previously anticipated operating costs in July and August as orders moved into production after the systems implementation. In addition, Powell continues to experience inefficiencies associated with the ramp up of its Canadian manufacturing operations, which are also resulting in higher operating costs.

Powell is scheduled to report actual fourth quarter and full year fiscal 2014 results in early December 2014.