Thursday evening, Bucyrus International Inc. (BUCY) announced financial results for the first quarter, reporting that profit more than doubled from last year on strong 171.6% growth in quarterly sales, helped by solid performance of both the company's business segments. Earnings per share for the latest quarter topped analysts' estimate, while quarterly sales missed consensus. The company noted that the results are not comparable, as the latest quarter results included operational results of DBT GmbH, which was acquired in May 2007.
The South Milwaukee, Wisconsin-based manufacturer of large-scale surface mining equipment said first quarter net income more than doubles to $41.08 million or $1.09 per share, up from $17.86 million or $0.57 per share in the prior-year quarter. On average, nine analysts polled by First Call/Thomson Financial expected earnings of $0.97 per share.
The results for the first quarter were calculated on 37.60 million outstanding shares, compared to 31.61 million outstanding shares in the same quarter last year.
Earnings before interest, taxes and depreciation or EBITDA for the quarter were $82.94 million, up 157.9% from $32.16 million in the year-ago quarter.
Sales for the first quarter soared 171.6% to $516.98 million from $190.36 million in the same quarter last year. Eight Wall Street analysts had a consensus revenue estimate of $551.92 million.
Original equipment sales spiraled 262.5% to $284.12 million from $78.37 million in the year-ago quarter, while Aftermarket parts and service sales were $232.86 million, jumped 107.9% from $131.58 million in the same quarter last year.
New orders related to surface mining operations for the latest first quarter were $260.8 million and $354.7 million for original equipment and aftermarket parts and service sales, while new orders related to underground mining operations were $353.1 million and $124.4 million for original equipment and aftermarket parts and service sales.
Gross profit for the first quarter climbed to $141.59 million from $52.08 million in the year-ago quarter, while gross margin as a percentage of sales remained flat with last year at 27.4%. Gross margins on surface mining original equipment and aftermarket parts and services improved, while overall gross margin was negatively impacted by the sales mix of lower margin original equipment and higher margin aftermarket parts and services.
Selling, general and administrative expenses rose to $59.48 million from $21.12 million in the prior-year quarter, while as a percentage of sales it increased to 11.5% from 11.1% in the year-ago quarter, primarily due to the acquisition of DBT.
Operating earnings for the latest quarter rose to $67.53 million from $27.97 million in the prior-year quarter, while interest expense was $5.91 million, up from $1.24 million in the year-ago quarter. Income tax expense for the quarter was $19.77 million, sharply higher than $8.60 million in the corresponding quarter last year.
The operating earnings increase was attributable to the rise in gross profit resulting from increased sales volume for surface mining operations and the acquisition of DBT, while interest expense increase was attributed to increased debt levels related to the financing of the acquisition of DBT.
BUCY closed Thursday's regular trading session at $116.63, down $6.39 or 5.19% on a volume of 1.69 million shares, higher than the three month average volume of 1.16 million shares.
For comments and feedback: editorial@rttnews.com