Luxfer Beats on Q4 Earnings, Down Y/Y - Analyst Blog

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Luxfer Holdings PLC ( LXFR ) reported adjusted earnings per American Depositary Shares (ADS) of 40 cents in fourth-quarter 2013, down from 45 cents earned in the year-ago quarter. However, the bottom-line result surpassed the Zacks Consensus Estimate of 37 cents.

In 2013, adjusted earnings per ADS were $1.42, down 30.7% year over year but above the Zacks Consensus Estimate of $1.40.

Revenues

Luxfer Group generated revenues of $116.0 million in the fourth quarter, down 10.8% year over year.

The Gas Cylinders Division generated roughly $64.1 million in revenues, down 9.3% year over year due to lower sales of industrial gas cylinders and composite life-support cylinders in Europe and the United States. The Elektron Division's revenues amounted to $51.9 million, down 12.5% year over year due to persistent weakness in the European automotive market as well as the U.S. defense market.

In 2013, revenues were $481.3 million, down from $511.6 million in 2012.

Costs/Margins

Cost of sales in the fourth quarter decreased 13.0% year over year and represented 74.1% of total revenue, down from 76.1% reported in the year-ago quarter. Distribution and administrative costs, as a percentage of total revenue, came in at 1.6% and 11.4%, respectively.

Adjusted earnings before interest, tax, depreciation and amortization were $19.8 million versus $20.0 million in the year-ago quarter.

Balance Sheet

Exiting fourth-quarter 2013, Luxfer's cash and short-term deposits balance was $28.4 million, down from $38.1 million in the previous quarter. Bank and other loans at the quarter-end were $63.8 million, flat versus the prior quarter.

Cash Flow

Luxfer generated roughly $7.3 million cash from operating activities in the fourth quarter, which was below $17.3 million generated in the year-earlier quarter. Capital expenditure increased 8.6% year over year to $10.1 million.

In 2013, the company paid roughly $10.8 million dividends, an increase from $5.8 million paid in 2012.

In conjunction with the earnings release, Luxfer also announced that its German subsidiary, Luxfer Gas Cylinders, has won a contract to supply bulk natural gas transportation modules to Sub 161, a Queensland-based company.  

Luxfer Holdings currently has a market capitalization of $529 million and operates in the diversified machinery industry. Three stocks in the machinery industry that posted better-than-expected results in fourth-quarter 2013 include Crane Co. ( CR ), CommScope Holding Company, Inc. ( COMM ) and Lennox International, Inc. ( LII ).



COMMSCOPE HLDG (COMM): Free Stock Analysis Report

CRANE CO (CR): Free Stock Analysis Report

LENNOX INTL INC (LII): Free Stock Analysis Report

LUXFER HOLDINGS (LXFR): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: ADS , COMM , CR , LII , LXFR

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