Actuant Corp. (ATU) reported that its second quarter net earnings declined to $28.4 million from $32.2 million in the comparable prior year quarter. Earnings per share of $0.38 in the second quarter of fiscal 2013 was 12% lower than the $0.43 in the comparable prior year quarter. Analysts polled by Thomson Reuters expected the company to report earnings of $0.37 per share for the quarter. Analysts' estimates typically exclude special items.
Consolidated sales for the second quarter were $370 million, 2% lower than the comparable prior year quarter. Twelve had consensus revenue estimate of $365.56 million for the quarter. Core sales declined 6% with acquisitions contributing 4% and the consolidated impact of foreign exchange negligible.
The company expects third quarter sales to be in the $410 million - $420 million range. Earnings per share are expected to be in the $0.63- $0.68 range compared to $0.60 in the prior year, with continued cost reduction actions and a lower than full year average income tax rate incorporated into the guidance. Analysts expect the company to report earnings of $0.67 per share on revenues of $441.42 million for the third-quarter.
Citing the current economic environment, first half performance, and the divestiture of an approximate $7 million product line last week, the company said it has modestly adjusted its full year 2013 sales and earnings per share guidance to $1.575- $1.600 billion and $2.15 - $2.25, respectively. Analysts expect the company to report earnings of $2.18 per share on revenues of $1.61 billion for fiscal 2013.
While announcing the first-quarter result, the company said it maintained its forecast for earnings in a range of $2.20 to $2.30 per share, but believed that the probability of attaining the high end of the range is low if current economic conditions and uncertainty continued. The company had expected its full-year outlook for sales to a range of about $1.600 billion to $1.625 billion.
The company now expects full year 2013 core sales to decline 3 to 5% from the previous negative 1 to 3%.
For comments and feedback: editorial@rttnews.com