), an industrial products and systems manufacturer, reported
earnings per share of 38 cents in the second quarter of fiscal
2013 (ended Feb 28, 2013), beating the Zacks Consensus Estimate
of 37 cents by a penny. However, the results lagged behind the
year-ago earnings of 43 cents per share by 11.6%, primarily due
Total revenue of $370.4 million in the quarter beat the Zacks
Consensus Estimate of $365.0 million by 1.5%. Core sales
decreased 6.0% while acquisitions contributed 4.0%.
Cost & Margin Performance:
Actuant's cost of products sold was reported at $230.8 million in
the quarter, a decline of 2.5% year over year. Gross profit
decreased 123 basis points to $139.6 million and gross margin
reached 37.7% for the quarter.
Selling, general and administrative expenses jumped 615 basis
points year over year to $90.0 million in the quarter. Actuant
reported an operating profit of $41.9 million compared with $49.5
million in the comparable quarter. Operating margin declined from
13.1% in the year ago quarter to 11.3% in the quarter, primarily
due to lower sales and production levels.
segment posted a 0.7% year-over-year increase in revenues to
$99.0 million. Core sales increased 1.0%, with a sales hike in
North America and the Asia Pacific regions, being offset by a
decline in Europe and China. The segment's operating income was
$26.4 million versus $$26.7 million in the year-ago quarter.
segment's revenues increased 2.4% year over year to $80.8
million. The increase can be attributed to a 3.0% gain from
acquisitions and a 1.0% core sales decline. Maintenance spending
in oil & gas, power generation and other energy markets was
instrumental in driving growth. The segment reported an operating
profit of $9.7 million, down from $11.6 million in the year-ago
Revenues at the
segment dropped 9.3% year over year to $69.9 million, attributed
to lower solar inverter sales and industrial transformer demand.
The segment reported an operating profit of $5.1 million, down
from $5.8 million in the year-ago quarter due to the benefit from
prior year restructuring actions.
segment's revenue decreased 2.3% to $120.7 million. Acquisitions
contributed 10.0% to growth, which was offset by a 12.0% decline
in core sales. Results reflected lower OEM production levels for
heavy-duty trucks as well as a decline in automotive sales. The
segment's operating income declined to $8.3 million from $13.3
million in the prior-year quarter.
Balance Sheet/Cash Flow:
Exiting the fiscal second quarter 2013, Actuant's cash and cash
equivalents were approximately $90.8 million, a considerable
increase from the $68.3 million in the previous quarter. Total
long-term debt stood at $385.0 million.
Cash flow from operations in the quarter was $28.0 million
compared with $31.5 million in the year-ago comparable quarter.
Total capital spending was roughly $4.0 million against $4.9
million spent in the quarter ending Feb 2012.
For fiscal 2013, Actuant anticipates irregular end-market demand
along with unfavorable economic conditions. Core sales are
anticipated to decline in the range of 3%-5% as against fall of
1%-3% expected earlier. Full year revenue is expected in the band
of $1.575 billion to $1.600 billion, down from the previous
estimate of $1.600 billion to $1.625 billion.
Actuant expects its EPS guidance to range between $2.15 and
$2.25, although forecasts difficulties in attaining earnings. In
the third quarter of fiscal 2013, total sales are expected in the
range of $410 million-$420 million and EPS between $0.63 and
Actuant currently holds a Zacks Rank #2 (Buy). Other stocks
worth a look in the diversified machinery industry include
Avery Dennison Corporation
); holding a Zacks Rank #1 (Strong Buy); also,
Active Power Inc.
Briggs & Stratton Corporation
), hold a Zacks Rank #2 (Buy).
ACTIVE POWER (ACPW): Free Stock Analysis
ACTUANT CORP (ATU): Free Stock Analysis
AVERY DENNISON (AVY): Free Stock Analysis
BRIGGS & STRATT (BGG): Free Stock Analysis
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