Thursday, EnPro Industries Inc. (NPO), an engineered industrial products company, reported a decrease in profit for the first-quarter from a year ago, hurt by sharp declines in volume in most of its markets.
EnPro recorded net income of $3.2 million or $0.16 per share, compared with $12.5 million or $0.58 per share in the prior year quarter. Net income included a $11.7 million tax benefit pertaining to the jurisdictional mix of earnings and losses.
Before asbestos-related expenses and other selected items, the company earned $5.8 million or $0.29 per share, compared to $22.3 million or $1.04 per share in the first quarter of 2008.
Net sales declined 24% to $216.4 million from $283.1 million in the year-ago quarter. The decline in sales for the quarter included a 6% reduction due to unfavorable foreign exchange rates and a contribution of 2% from acquisitions.
Sales in the Sealing Products segment decreased 21%, compared to the first quarter of 2008. Engineered Products segment reported a 34% decrease in sales from the first quarter of 2008. Engine Products and Services segment sales improved 20% from the first quarter of 2008.
Steve Macadam, president and chief executive officer said, "Sharp declines in volume in most of our industrial markets have significantly reduced our profitability. As our markets have deteriorated, we have acted quickly to reduce employment levels, freeze salaries, and shorten workweeks, and we have taken other significant steps to lower production costs and reduce spending. We expect to benefit from these steps over the remainder of the year."
EnPro indicated an evaluation of goodwill to determine if it has been impaired by deterioration in the global economic environment, with preliminary results suggesting potential impairments at GGB in the Engineered Products segment and at Plastomer Technologies in the Sealing Products segment. Total goodwill related to the businesses at March 31, 2009 was $110.2 million. The exact amount of any potential impairment charge has not been determined, with EnPro indicating the charge to be non-cash, to be included in its second quarter results.
NPO is currently trading at $16.94, down $3.11 or 15.55%, on a volume of 0.28 million shares on the NYSE.
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