Actuant posts 4Q loss; 1Q guidance falls short
MILWAUKEE (AP) — Industrial products maker Actuant moved to a loss in its fiscal fourth quarter because of a big charge stemming from weaker-than-expected results from a company that it acquired two years ago.
Excluding the charge, the company posted a profit that edged past Wall Street's view. But its outlook for the current quarter fell short.
For the three months ended Aug. 31, Actuant Corp. lost $16.5 million, or 23 cents per share. That compares with a profit of $41.4 million, or 55 cents per share, a year earlier.
Removing an impairment charge of 77 cents per share related to the Mastervolt business, earnings were 55 cents per share. Analysts expected earnings of 54 cents per share, according to a FactSet poll.
Actuant acquired Mastervolt, a Dutch company that makes products for the maritime, mobile and solar energy industry, in 2010 for $150 million. Earlier this month Actuant said that Mastervolt has underperformed since it was purchased, due partly to weaker economic conditions in Europe.
Revenue rose less than 1 percent to $405.3 million from $403.4 million. Acquisitions and better results from its electrical, energy and industrial divisions bolstered sales, but Wall Street forecast higher revenue of $410.2 million. The company said that the stronger dollar and weakening economy in Europe hurt results. A stronger dollar cuts into the value of revenue generated overseas.
For the year, net income fell 22 percent to $87.3 million, or $1.17 per share, from $111.6 million, or $1.50 per share, in the previous year. Annual revenue increased 11 percent to $1.61 billion from $1.45 billion.
In the current quarter, which ends in November, the Menomonee Falls, Wis., company predicts earnings of 48 cents to 52 cents per share on revenue between $390 million and $395 million.
Wall Street expects higher earnings of 53 cents per share on revenue of $408.4 million.
The company lifted its guidance for the year, however. In fiscal 2013, Actuant expects profit of $2.20 to $2.30 per share. It had predicted profit of $2.15 to $2.30 per share. Analysts expect $2.27 per share.
For revenue, Actuant estimates $1.68 billion to $1.72 billion, up from a previous range of $1.67 billion to $1.7 billion. Analysts forecast $1.69 billion.