Actuant Corp. says it will report lower-than-expected earnings for the fiscal third quarter due to a recently announced impairment charge, restructuring activities and weaker-than-expected sales.
"Current economic conditions have significantly impacted consumer discretionary spending, resulting in a substantial reduction in recreational boating industry sales," the company said in a statement. "OEM boatbuilders have responded to the sharp drop in end-market demand and high levels of finished goods inventory by temporarily suspending operations as well as eliminating brands and permanently closing facilities."
As a result, Actuant had sales of $290 million and earnings of 6 cents to 8 cents per share (excluding the impairment charge) in the third quarter. This compares to its previously issued guidance of $300 million to $320 million and 12 cents to 20 cents per share, respectively.
Actuant also said its previously issued full-year earnings guidance of 85 cents to $1 per share is no longer applicable. The company will provide an update on its expectations for the year and further information on its third fiscal quarter results, restructuring actions and credit facility amendments, in conjunction with its third-quarter earnings release on June 17.
Headquartered in Butler, Wis., Actuant manufactures hydraulic and electrical tools and supplies, umbilical, rope and cable solutions as well as highly engineered position and motion control systems.