) reported earnings per share, adjusted for one-time items, of 31
cents for the second quarter of fiscal 2014 (ended Sep 28, 2013).
Results were 7 cents above 24 cents earned in the year-ago
quarter and also surpassed the Zacks Consensus Estimate of 26
cents per share.
Including one-time adjustments, the company reported loss per
share of 54 cents compared with earnings per share of 19 cents
reported in the year-ago quarter.
Rexnord's net sales increased 3.0% year over year to $514.5
million in the second quarter. The increase can be attributed to
healthy performance at the company's business segments.
Process & Motion Control sales in the quarter increased 0.9%
to $311.8 million while sales at Water Management business were
$202.7 million, up 6.5% year over year.
Cost of sales in the second quarter increased 3.1% year over year
and represented 62.7% of total revenue; up from 62.6% in the
year-ago quarter. Gross margin came in at 37.3%. Selling, general
and administrative expenses, as a percentage of total revenue,
stood at 20.5%.
Exiting the second quarter of fiscal 2014, Rexnord's cash and
cash equivalents stood at $206.4 million, down compared with
$334.9 million in the previous quarter. Long-term debt registered
a slight sequential decline and came in at $1,952.2 million at
the end of the quarter.
In the second quarter of fiscal 2014, Rexnord generated $36.4
million cash from operating activities as compared with $46.4
million generated in the year-ago quarter. Capital spending
compared with the year-ago quarter declined and totaled $11.4
million in the quarter.
For full fiscal year 2014, management of Rexnord has raised its
earnings per share guidance to $1.32-$1.38 from $1.12-$1.18
For the third quarter of fiscal 2014, sales are anticipated to be
within $495-$505 million and adjusted earnings per share within
29-32 cents range.
Rexnord Corporation is a well-known mechanical components
manufacturer and currently has a $2.1 billion market
capitalization. The stock currently has a Zacks Rank #2 (Buy).
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) carries a Zacks Rank #2 (Buy).
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