Actuant Corp. reported flat sales of $344 million from continuing operations in its third-quarter results today while noting that results for discontinued operations include those of the electrical segment, which the company recently announced it wants to sell.
Actuant said the report for the quarter, which ended May 31, includes a $150 million non-cash, after-tax charge from the write-down of the net assets held for sale to their net realizable value.
The company reported a net loss for the quarter that ended May 31 of $93 million, or $1.24 a share, compared with a profit of $34.4 million, or 45 cents a share, in the year-earlier period.
Net sales for the quarter rose slightly to $344.2 million from $343.3 million in the year-earlier period.
Core sales declined 2 percent in all three continuing segments — energy, engineered solutions and industrial, with the industrial and energy segments posting “solid core growth,” Actuant CEO Bob Arzbaecher said in a statement.
“As expected, the third quarter represented an inflection point for Actuant as we delivered a 22 percent increase in EPS from continuing operations and improved sequential sales and profit margins,” Arzbaecher said. “Due to weak economic conditions, we continue to experience subdued activity in our global industrial markets and inconsistent demand. However, we did a good job balancing cost reduction actions and growth investments.”
The company anticipates 2014 core growth in the 3 to 5 percent range, projecting total sales of $1.32 billion to $1.34 billion.
Arzbaecher said he also anticipates low global GDP and high uncertainty to persist.
“Actuant will continue to focus on taking advantage of our broad product and geographic scope to capitalize on profitable growth opportunities,” he said.
“With another expected strong cash-flow quarter, we should finish fiscal 2013 with $190 to $200 million of free cash flow, representing approximately 115 to 120 percent conversion of net earnings, excluding the non-cash discontinued operations write-down,” he said. “This would represent our 13th consecutive year of conversion in excess of 100 percent.”