Actuant Announces Second Quarter Results, Raises Guidance.MILWAUKEE -- Actuant Corporation (NYSE NYSE See: New York Stock Exchange : ATU (ADSL Transceiver Unit) A device that provides ADSL modulation of the telephone line. The device at the telco side is the ATU-C (Central), which is a line card plugged into the DSLAM. ) today announced results for its second quarter ended February 28, 2007. Including a restructuring provision, second quarter fiscal 2007 net earnings and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of ("EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ") were $18.9 million and $0.62, respectively, versus comparable prior year net earnings and EPS of $19.3 million and $0.63, respectively. Fiscal 2007 second quarter results include a $3.8 million ($2.9 million net of tax, or $0.09 per diluted share) charge covering a portion of the Company's previously announced restructuring of its European Electrical business. Excluding the restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , second quarter EPS increased 13% year-over-year to $0.71 (see attached reconciliation of earnings). Net earnings for the six months ended February 28, 2007 were $44.0 million, or $1.43 per diluted share, compared to $40.6 million, or $1.33 for the prior year period. Fiscal 2007 results include $0.09 per diluted share of European Electrical restructuring costs. Excluding restructuring, EPS was $1.52 in the first six months of fiscal 2007, a 14% increase over the prior year (see attached reconciliation of earnings). Second quarter sales increased 24% to $341 million from $276 million in the prior year, reflecting strong core growth, the weaker US dollar, and approximately $35 million of sales from acquired businesses. Excluding foreign currency exchange rate changes and business acquisitions, second quarter fiscal 2007 sales increased approximately 7%. This increase reflected core growth in all four segments, including 12% in the Industrial Segment. Sales for the six months ended February 28, 2007 were $684 million, approximately 22% higher than the $560 million in the comparable prior year period. Excluding the impact of foreign currency rate changes and sales from acquired businesses, sales for the six-month period increased 8%. Robert C. Arzbaecher, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Actuant, commented, "We are pleased with our second quarter results, including the 24% sales growth and 13% growth in EPS excluding restructuring, which were led by the strong performance of the Industrial Segment. Consistent with our business model, acquisitions made a significant contribution to the sales growth, however, each of our four segments contributed to the 7% core growth." Arzbaecher added, "We continued to see significant operating profit margin Operating profit margin The ratio of operating profit to net sales. improvement in our Industrial Segment. While consolidated operating profit margins were down slightly on a year-over-year basis due to lower profitability in the Electrical and Actuation ac·tu·ate tr.v. ac·tu·at·ed, ac·tu·at·ing, ac·tu·ates 1. To put into motion or action; activate: electrical relays that actuate the elevator's movements. 2. Systems segments, Industrial Segment margins improved by 160 basis points. Progress was made in improving Automotive and Recreational Vehicle margins during the quarter, which positions Actuant well for strong second half earnings growth. We expect operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: improvement in both Electrical and Actuation Systems Segments in the third and fourth quarter, and expect margin expansion for Actuant in total for the fiscal year." The Company also announced sales and earnings guidance for the third quarter and full year. Arzbaecher stated, "Excluding future acquisition activity and European Electrical restructuring costs, we expect year-over-year third quarter sales and EPS to increase due to completed acquisitions, core sales growth and margin expansion. We are projecting third quarter sales and EPS (excluding restructuring) to be in the range of $360 - $370 million and $0.89 - $0.96 per share, respectively. We are also raising our full year fiscal 2007 sales and EPS ranges, resulting in updated guidance of $1.39 - $1.41 billion and $3.30 - $3.45 per share (excluding restructuring), respectively. The increased guidance equates to projected full year EPS growth of 14-19%." Net debt (total debt of $595 million less approximately $25 million of cash) was $570 million, an increase of $115 from the beginning of the quarter. Excluding the approximate $110 million of cash used for acquisitions and the $9 million decline in accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. , Actuant generated approximately $5 million of cash flow in the second quarter, which is a seasonally weak cash-flow period. The Company believes second half cash flow will be significantly higher than that in the first half, in line with historical seasonality. The Company had availability under its revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility in excess of $200 million as of February 28, 2007. [TABLE OMITTED] Second quarter fiscal 2007 Industrial Segment sales increased 36% to approximately $94 million, resulting from increased demand, foreign currency rate changes, and sales from acquisitions (D.L. Ricci, Precision Sure-Lock, Veha and InjectAseal). Excluding foreign currency exchange rate changes and sales from acquired businesses, Industrial Segment sales increased approximately 12% from the comparable prior year period, driven by continued strong demand in both the hydraulic tool and joint integrity product lines. Second quarter operating profit margins also expanded, increasing from 24.1% in the second quarter of last year to 25.7% in the current year, due to the continued benefit of higher volume and operating efficiencies. [TABLE OMITTED] Fiscal 2007 second quarter Electrical Segment sales increased 17% to approximately $124 million, reflecting 4% core sales growth, foreign currency exchange rate changes and the fiscal 2006 acquisitions of B.E.P. Marine and Actown. Electrical operating profit margins declined from 10.2% in the second quarter of fiscal 2006 to 4.7% in fiscal 2007 due primarily to the $3.8 million European Electrical restructuring charge, related inefficiencies in the European Electrical business and unfavorable sales and acquisition mix. Excluding the restructuring provision, current year second quarter operating margins were 7.7%. The Company is on track with its previously announced plans to downsize Downsize Reducing the size of a company by eliminating workers and/or divisions within the company. Notes: When a company downsizes, it is attempting to find ways to improve efficiency and increase profitability. It is sometimes referred to as trimming the fat. the European Electrical operations to improve profitability, and expects to recognize an additional $8-11 million of related restructuring costs (pre-tax) prior to the end of calendar 2007. [TABLE OMITTED] Actuation Systems second quarter fiscal 2007 sales increased 11% to approximately $98 million, reflecting foreign currency exchange rate changes and 7% core sales growth. Core sales growth was driven by increased demand in automotive and recreational vehicle ("RV") actuation systems product lines, both of which increased approximately 15% year-over-year due to the continued impact of new convertible auto platform introductions and RV market share gains. Despite robust sales growth in Europe, as expected, truck actuation systems product line sales declined approximately 5% due to the end of the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. emissions-related pre-buy. Actuation Systems operating profit margins declined to 8.1% in the second quarter of fiscal 2007, due primarily to unfavorable product line sales mix sales mix See product mix. . [TABLE OMITTED] Fiscal 2007 second quarter Engineered Products Segment sales increased approximately 92% year-over-year due to 9% core sales growth and the acquisition of Maxima in December 2006. Operating profit margins decreased to 12.6% from 13.4% in the prior year second quarter, primarily due to Maxima purchase accounting charges, higher amortization expense and acquisition sales mix. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement Certain of the above comments represent forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. made pursuant to the provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Management cautions that these statements are based on current estimates of future performance and are highly dependent upon a variety of factors, which could cause actual results to differ from these estimates. Actuant's results are also subject to general economic conditions, variation in demand from customers, the impact of geopolitical ge·o·pol·i·tics n. (used with a sing. verb) 1. The study of the relationship among politics and geography, demography, and economics, especially with respect to the foreign policy of a nation. 2. a. activity on the economy, continued market acceptance of the Company's new product introductions, the successful integration of acquisitions, restructuring, operating margin risk due to competitive pricing and operating efficiencies, supply chain risk, material and labor cost increases, foreign currency fluctuations and interest rate risk. See the Company's registration statements filed with the Securities and Exchange Commission for further information regarding risk factors. An investor conference call is scheduled for 11am ET today, March 22, and may be listened to via web cast on Actuant's website at www.actuant.com. About Actuant Actuant, headquartered in Butler, Wisconsin Butler is the name of some places in the U.S. state of Wisconsin:
This article consisting of geographical locations in Wisconsin is a disambiguation page, a list of pages that otherwise , is a diversified industrial company with operations in more than 30 countries. The Actuant businesses are market leaders in highly engineered position and motion control systems and branded hydraulic and electrical tools and supplies. Since its creation through a spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. in 2000, Actuant has grown its sales from $482 million to over $1.3 billion and its market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. from $113 million to over $1.3 billion. The Company employs a workforce of more than 6,700 worldwide. Actuant Corporation trades on the NYSE under the symbol ATU. For further information on Actuant and its business units, visit the Company's website at www.actuant.com. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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