Luxfer Holdings PLC
) reported disappointing third-quarter 2013 financial results as
its adjusted net income in the quarter declined 7.9% year over
year to $9.3 million. Adjusted earnings per American Depositary
Share (ADS) in the quarter were 33 cents, missing the Zacks
Consensus Estimate of 35 cents by 5.7%.
Revenues for Luxfer Group increased 4.7% year over year to
$119.9 million. Results were boosted by a rise in sales of
alternative fuel cylinders and an improved market for
life-support cylinders in the U.S. Revenues missed the Zacks
Consensus Estimate of $123.0 million.
Gas Cylinders Division
generated roughly $64.3 million in revenues, up 11.8% year over
year, on the back of improved sales in composite alternative fuel
cylinders and composite life-support cylinders. The
's revenues amounted to $55.6 million, down 2.5% year over year,
due to a weaker-than-expected automotive demand in the European
Cost of sales in the third quarter rose 7.1% year over year
and represented 75.8% of total revenue, an increase from 74.1%
reported in the year-ago quarter. Distribution and administrative
costs, as a percentage of total revenue, stood at 1.3% and 11.2%,
Adjusted earnings before interest, taxes, depreciation and
amortization margin in the quarter was 15.3%, decreasing 210
basis points, year over year.
Exiting third-quarter 2013, Luxfer's cash and short-term
deposits balance stood at $38.1 million, against $37.0 million in
the previous quarter. Bank and other loans at the quarter-end
stood at $63.7 million, flat versus the prior quarter.
Net cash flow from operating activities in the quarter was
$13.3 million, compared with $6.8 million in the year-earlier
quarter. Capital expenditure was recorded at $6.2 million versus
$4.4 million in the year-ago quarter.
Management believes that the European markets will have a
negative impact on fourth-quarter earnings, whereas the North
American markets are strong barring the defense segment.
Additionally, the Gas Cylinder business is performing well and
this trend is expected to continue in the quarters to come. For
2013, management anticipates trading profit to be at the lower
end of the previously announced $60.5 million-$63.5 million
range. Moreover, earnings per ADS are expected in the range of
$1.40 to $1.43 in 2013.
Other Stocks to Consider
Luxfer currently carries a Zacks Rank #3 (Hold). Other stocks
worth a watch in the industry include
DXP Enterprises, Inc.
). While Xylem carries a Zacks Rank #1 (Strong Buy), Graham and
DXP Enterprises both hold a Zacks Rank #2 (Buy).
DXP ENTERPRISES (DXPE): Free Stock Analysis
GRAHAM CORP (GHM): Free Stock Analysis Report
LUXFER HOLDINGS (LXFR): Free Stock Analysis
XYLEM INC (XYL): Free Stock Analysis Report
To read this article on Zacks.com click here.