Electrical equipment and components maker, AZZ Inc. (AZZ) Friday issued earnings guidance for fiscal year 2013, which is below analysts' expectations. The company also said it has agreed to acquire substantially all of the assets of Galvan Metals Inc. of Montreal, Canada. The acquisition is expected to close on January 31.
AZZ noted that the acquisition is part of its strategy to continue geographic expansion and continued growth of its Galvanizing Services segment.
For the fiscal ending February 2013, AZZ expects earnings to be in the range of $3.25 to $3.55 range per share. Revenues are anticipated to be between $475 million and $510 million.
On average, four analysts polled by Thomson Reuters expect earnings per share of $3.63 on revenue of $504.90 million for fiscal 2013. Analysts' estimates typically exclude one-time items.
The company said it expects 60 percent of its revenues from Galvanizing Services Segment and 40 percent from the Electrical and Industrial Products Segment.
According to the company, margins in the Electrical Segment will only see modest improvement and should be in the range of 14 to 16 percent.
The Galvanizing Services Segment revenues are projected to be up mainly due to the full year impact of the Galvan Metals acquisition. The company anticipates margins from the segment to remain strong, and to be in the range of 24 to 26 percent.
Further, the company's board authorized the repurchase of up to 10 percent of its outstanding shares at par value $1.00 per share.
The board also declared a quarterly cash dividend of $0.25 per share to shareholders of record on February 3, 2012, payable on February 17.
AZZ closed Thursday's regular trading at $48.27 on the NYSE.
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