Machinery company, Actuant Corporation ( ATU ) has lately been in the process of streamlining its business structure in order to better align it with core competencies. In line with this strategy, Actuant recently divested its recreational vehicle business to Drew Industries Incorporated ( DW ) for a sum of $35 million.
Previously a part of Engineered Solutions segment, the recreational vehicle business generated annual revenues of roughly $30 million. The business deals with designing and manufacture of motorhome leveling and room slide-out systems and retractable steps. The products are mainly manufactured under PowerGear and Kwikee brand names.
Earlier, in Dec 2013, the company had divested its Electrical segment to Sentinel Capital Partners for $258 million in cash. The Electrical segment involved designing, production and marketing of consumables and electrical tools, including electrical meters, connectors and cable ties for end markets like electrical distribution, power transformation, original equipment manufacturers etc. Popular brands in the segment were Gardner Bender, Del City and A.W. Sperry.
Although the latest divestiture is supposed to be accretive to earnings in the coming quarters, revenues are likely to go down in the near term. The company is expected to release its fiscal third-quarter 2014 results tomorrow before the market opens. The Zacks Consensus Estimate for the quarter is pegged at 62 cents per share. Also, revenues are expected at $375 million.
With a market capitalization of $2.6 billion, Actuant has a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Gorman-Rupp Co. ( GRC ) and Blount International Inc. ( BLT ). While Gorman-Rupp sports a Zacks Rank #1 (Strong Buy), Blount International holds a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportACTUANT CORP (ATU): Free Stock Analysis ReportGORMAN RUPP CO (GRC): Free Stock Analysis ReportBLOUNT INTL (BLT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research