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Garlock parent EnPro posts second quarter increases, misses Street estimates.

Byline: Velvet Spicer

Garlock Sealing Technologies LLC parent EnPro Industries Inc. last week reported a 13 percent increase in second quarter sales and a 28 percent increase in net income, but failed to meet Street estimates.

For the quarter ended June 30, EnPro posted revenues of $393.6 million, up from $307.6 million in the second quarter last year. Adjusted net income for the quarter increased to $15.8 million from $10.1 million a year ago. On a per-share basis, earnings were 75 cents, compared with 46 cents in the year-ago quarter.

Analysts polled by Zacks Investment Research had estimated earnings of $1.12 per diluted share.

"We had a difficult second quarter, however the high-level numbers don't tell the full story," EnPro President and CEO Steve Macadam said in a statement. "Four of our six divisions did well in the second quarter, and all of our businesses generated year-over-year sales growth."

Macadam said profitability was challenged by continued softness in the industrial gas turbine market, which led to the company's decision to exit its facility servicing that market. Additionally, challenges in the manufacturer's heavy-duty trucking brake products group and the negative impact of currency adjustments also affected EnPro's bottom line.

"We expect stronger second-half performance in Sealing Products and Power Systems and remain optimistic about our overall financial performance in the back half of the year," Macadam said.

For the full year, EnPro is forecasting an 8 to 9 percent sales growth and adjusted earnings of $214 million to $220 million, down from previous guidance.

EnPro is a Charlotte, N.C.-based company engaged in the design, development, manufacturing and marketing of proprietary engineered industrial products. Garlock, based in Palmyra, is a multinational manufacturer of high-performance fluid sealing and pipeline solutions with an emphasis on safety, longevity and productivity.

Garlock's customers work in the field of chemical processing, food and beverage, pharmaceutical, and oil and gas, among others.

Following EnPro's earnings call after the bell Wednesday, shares of company stock (Nasdaq: NPO) plummeted from $75.10 to $66.33, but have since recovered to $75.81.

vspicer@bridgetowermedia.com / 585-653-4021

Follow Velvet Spicer on Twitter: @Velvet_Spicer

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Publication:Rochester Business Journal
Article Type:Financial report
Date:Aug 7, 2018
Words:368
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