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Actuant Corp. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: July 8, 2011 07:28PM
Actuant Corp. (ATU) filed Quarterly Report for the period ended 2011-05-31. Actuant Corp. Cl A has a market cap of $1.89 billion; its shares were traded at around $27.53 with a P/E ratio of 18.7 and P/S ratio of 1.6. The dividend yield of Actuant Corp. Cl A stocks is 0.2%. Actuant Corp. Cl A had an annual average earning growth of 3.1% over the past 10 years.
Highlight of Business Operations:
Operating profit was $58 million and $137 million for the three and nine months ended May 31, 2011, respectively, compared to $40 million and $84 million in the respective prior year periods. This year-over-year improvement was mainly driven by increased sales and production levels, favorable product mix and an improved cost structure. In addition, the three and nine month periods ended May 31, 2010 included incremental restructuring charges of $0.5 million and $13 million, respectively. The changes in operating profit at the segment level are discussed in further detail below.
Industrial segment operating profits reached $30 million and $70 million, respectively in the three and nine months ended May 31, 2011. Third quarter and year-to-date operating profit comparisons were favorably impacted by $0.3 million and $5 million, respectively of restructuring costs incurred in the prior year. The expansion of Industrial segment operating profit margins despite additional costs associated with growth initiatives, unfavorable acquisition mix and higher incentive compensation costs was the result of favorable product mix, a lower cost structure from past restructuring actions and increased production levels (higher absorption of fixed manufacturing costs).
Energy segment operating profit increased by $7 million (100%) to $14 million for the third quarter of fiscal 2011, while year-to-date operating profit increased by $10 million (45%) to $32 million. The year-over-year increase in operating profit margins is primarily the result of continued productivity improvements and significantly increased operating leverage, reduced restructuring charges and higher margins of newly acquired businesses.
Electrical segment operating profit for the three and nine months ended May 31, 2011was $5 million and $14 million, respectively. Prior year third quarter and year-to-date results included $1 million and $4 million, respectively, of restructuring costs. Operating profits declined as a result of expedited freight costs, commodity cost inflation and temporary inefficiencies as we completed facility consolidations. Unfavorable mix resulting from the Mastervolt acquisition also unfavorably impacted current year operating profit margins, despite the higher sales levels and lower incentive compensation costs.
Engineered Solutions segment operating profit was $20 million and $47 million for the three and nine months ended May 31, 2011. Third quarter and year-to-date operating profit comparisons are favorably impacted by $0.4 million and $3 million, respectively, of restructuring costs incurred in the prior year. Operating profit margin expansion was the result of continued productivity improvements and the benefits of previously completed restructuring actions, somewhat offset by the additional costs associated with growth investments.
General corporate expenses for the three and nine months ended May 31, 2011 increased $3 million and $8 million, respectively, due to investments in growth initiatives, provisions for idle facilities and increased incentive compensation costs.
Stocks Discussed: ATU,