Actuant Corp., the parent company of Marinco Electrical Group and Mastervolt, today reported a 27 percent increase in sales for its third quarter, which ended May 31.
The company reported core sales growth in all four segments, resulting in a consolidated 14 percent year-over-year increase in core revenue — total sales, less the effect of acquisitions, divestitures and foreign currency rate changes.
“Actuant is executing well and delivering terrific results, including another quarter of double-digit organic sales growth, margin expansion, higher than expected [earnings per share] and healthy cash flow,” chairman and CEO Robert C. Arzbaecher said in a statement. “We reported year-over-year core sales growth in all four segments, with sequential increases in three of the four segments and in excess of 20 percent year-over-year core growth in both [the] industrial and energy [segments].
“Incremental profits on the higher sales led to year-over-year operating margin expansion of 140 basis points and EPS above the top of our guidance range,” he added. “We generated robust free cash flow and, consistent with our business model, deployed it in growth investments, including the acquisition of Weasler just after quarter-end. It was a strong performance quarter by all measures, and we expect that momentum to continue into our fourth quarter and next fiscal year.”
Consolidated sales for the third quarter were $393 million, 27 percent higher than the comparable prior-year quarter. Core sales increased 14 percent, with acquisitions contributing an additional 9 percent and the weaker U.S. dollar 4 percent.
Earnings and EPS from continuing operations were $38.4 million and 51 cents, respectively, compared with $28.3 million and 39 cents in the comparable prior-year quarter.
Sales for the nine months that ended May 31 were $1.04 million, 23 percent higher than the $850 million in the comparable prior-year period.