By RTT News, October 09, 2013, 07:31:00 AM EDT
(RTTNews.com) - Cleaning and maintenance chemicals maker Zep Inc. ( ZEP ) reported that its fourth-quarter net income declined to $2.67 million or $0.12 per share, from $7.27 million or $0.33 per share in the same quarter last year.
The company said it continues to execute plans for a variety of complexity-reduction activities, including facilities consolidation, process simplification, product-line and customer rationalization and headcount reductions related to such activities.
During the fourth quarter of fiscal 2013, it recorded a $5.2 million restructuring charge in connection with these efforts and expect to record $1 million to $2 million in additional charges during the next few quarters.
It also continues to believe these actions will result in annualized cost savings ranging from $8 million to $12 million, and that it remains on target to realize approximately $9 million of these savings during fiscal 2014.
Adjusted net income for the latest-quarter was $6.25 million or $0.28 per share. Analysts polled by Thomson Reuters expected the company to report earnings of $0.24 per share for the quarter. Analysts' estimates typically exclude special items.
Net Sales for the quarter grew 6.1% to $182.2 million from the prior year's $171.70 million, due to better than expected promotional activity at retailers and the inclusion of Zep Vehicle Care, which added $16.2 million to net sales. Three analysts had consensus revenue estimate of $179.09 million for the quarter.
"We achieved our sales projections for the fourth quarter, generated significant free cash flow and de-levered the balance sheet following our most recent acquisition. We achieved all of this while progressing with a restructuring program that we believe will significantly enhance both the abilities of our selling organizations and the efficiency of our supply chain operations," said John Morgan, Chairman, President and Chief Executive Officer of Zep Inc.
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