Industrial parts maker Rexnord Corp. (RXN) Tuesday reported a higher fourth-quarter profit, while net sales remained flat with last year. The company said its board of directors continues to review Rexnord's various strategic alternatives and expects to complete its review by the end of the first quarter of fiscal 2014.
In mid-February, Rexnord said it has initiated a strategic review to seek alternatives including a possible sale of the company, or one or both of its business platforms. Rexnord, which is controlled by private equity Apollo Global LLC (APO), had also said it may seek to maintain its current structure and pursue its existing business strategy.
Todd Adams, president and chief executive officer of the company said, "In our Process & Motion Control platform, we are seeing progression and stability in many of our end markets...Looking ahead, we are increasingly confident in our ability to drive long-term growth and continued strong operating performance within the platform..."
Process & Motion Control net sales were $340 million. Excluding the 1 percent unfavorable impact of foreign currency translation, core net sales decreased 4 percent from a year ago. In Water Management, core and reported sales growth was 11 percent to $200 million.
In the fourth quarter, the company's net income increased to $23.9 million or $0.24 per share, from $8.6 million or $0.12 per share in the prior year. The net income for the last year included a loss of $6.3 million or $0.09 per share from discontinued operations.
Adjusted earnings were $0.32, while the company posted $0.38 per share last year.
On average, seven analysts polled by Thomson Reuters expected earnings per share of $0.31 for the quarter. Analysts' estimates typically exclude one-time items.
Net sales were $540.3 million, compared to $540.1 million in the preceding year. Core sales growth was 1 percent. Analysts estimated revenues of $542.94 million for the quarter.
Looking ahead to the first quarter, the company expects adjusted earnings per share to be in the range of $0.17 to $0.19. Sales are expected to be between $489 million and $499 million.
Analysts expects the firm to report earnings per share of $0.27, on revenues of $517.9 million for the quarter.
For fiscal 2014, the company expects adjusted earnings per share to be in the range of $1.10 to $1.18. Core sales growth is anticipated to be 1 to 3 percent. Analysts estimate earnings per share of $1.10 for the year.
RXN is currently trading at $18.49, up 3.7 percent, on a volume of 271,117 shares.
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