Luxfer Holdings PLC
) reported lower-than-expected results for the first quarter 2014.
Adjusted earnings of 28 cents per American Depositary Shares (ADS)
lagged the Zacks Consensus Estimate of 32 cents per ADS. Compared
with the year-ago quarter, the bottom-line result dropped by 17.6%.
Luxfer generated revenues of $123.3 million in first quarter 2014,
up 0.7% year over year and ahead of the Zacks Consensus Estimate of
$116 million. Much of the top-line improvement in the Elektron
division was offset by weak results in the Gas Cylinders division.
Details of the segmental performance are provided below:
Revenues from the Gas Cylinders division were roughly $66.1
million, down 3.4% year over year and representing 53.6% of total
revenue. The Elektron division generated revenues of $57.2 million,
up 5.9% year over year and marking 46.4% of total revenue.
Cost of sales in the first quarter 2014 inched up 0.3% year over
year and represented 76.6% of total revenue, down from 76.9%
reported in the year-ago quarter. Distribution and administrative
costs, as a percentage of total revenue, came in at 1.7% and 11.8%,
Adjusted earnings before interest, tax, depreciation and
amortization (EBITDA) were $16.9 million versus $18.7 million in
the year-ago quarter.
Balance Sheet/ Cash Flow
Exiting the first quarter 2014, Luxfer had cash and short-term
deposits of $18.5 million, down 34.9% sequentially. Bank and other
loans were flat at $63.8 million.
In the quarter, Luxfer generated cash of $1.3 million from its
operating activities, down significantly from $9.6 million in the
year-ago quarter. Capital expenditure was down 20.5% year over year
to $3.1 million. Dividends distributed in the quarter amounted to
Luxfer Holdings has a $535.5 million market capitalization and
carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the
machinery industry include
Illinois Tool Works Inc.
). While Gorman-Rupp carries a Zacks Rank #1 (Strong Buy), both
Illinois Tool Works and Nordson hold a Zacks Rank #2 (Buy).
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