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Actuant Corp. Reports Operating Results (10-Q)

January 09, 2012 | About:
10qk

10qk

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Actuant Corp. (ATU) filed Quarterly Report for the period ended 2011-11-30.

Actuant Corp. Cl A has a market cap of $1.59 billion; its shares were traded at around $23.1 with a P/E ratio of 12.76 and P/S ratio of 1.1. The dividend yield of Actuant Corp. Cl A stocks is 0.17%. Actuant Corp. Cl A had an annual average earning growth of 5.6% over the past 10 years.

Highlight of Business Operations:

Fiscal 2012 first quarter consolidated net sales increased 23% to $393 million from $318 million in the comparable prior year period. Excluding the $47 million year-over-year increase in sales from acquisitions and the $3 million favorable impact of foreign currency exchange rate changes, fiscal 2012 first quarter consolidated core sales increased 7% compared to the prior year. This core sales growth was driven by broad based strength in industrial markets, increased activity in the later cycle Energy segment, certain pricing actions and the benefit of developing new products and expanding our focus in attractive vertical markets. Operating profit for the first quarter of fiscal 2012 was $57 million, compared to $42 million in the prior year period. This year-over-year improvement was mainly driven by increased sales and profit margin expansion. The changes in sales and operating profit at the segment level are discussed in further detail below.

Fiscal 2012 first quarter sales increased $13 million (15%) to $100 million compared to the prior year period. Excluding the impact of the weakening U.S. dollar (which favorably impacted sales comparisons by $1 million), core sales growth for the first quarter of fiscal 2012 was 13%. The core sales growth during the quarter was primarily due to increased global demand, driven by improved end-market conditions, penetration into emerging markets and new product launches. These increased sales volumes and favorable product mix resulted in operating profit margin expansion during the quarter. Industrial segment operating profit increased by $8 million (38%) to $28 million for the three months ended November 30, 2011.

Energy segment net sales for the three months ended November 30, 2011 increased by $9 million (14%) to $80 million compared to the prior year period. Excluding the favorable impact of foreign currency rate changes ($1 million), core sales grew 12% for the first quarter of fiscal 2012, the result of higher activity levels across nearly all of the segments primary markets, including capital project activity in the oil & gas market, maintenance related spending and strong sales to the power generation (nuclear) market. Energy segment operating profit increased by $1 million (8%) to $13 million for the first quarter of fiscal 2012. Despite continued productivity improvements and increased operating leverage (driven by the higher sales volumes), operating profit margins declined in the first quarter of fiscal 2012 as a result of unfavorable product mix and additional costs associated with growth investments.

Compared to the prior year, fiscal 2012 first quarter Electrical segment net sales increased $28 million (50%) to $83 million. Excluding the $23 million of sales from the Mastervolt acquisition and the favorable impact of changes in foreign currency exchange rates, core sales increased 7% for the three months ended November 30, 2011. This core sales growth was the result of higher sales volumes in the retail, industrial and utility markets as well as price increases. Electrical segment operating profit for the three months ended November 30, 2011 was $5 million. First quarter 2012 operating profit margins declined slightly from the comparable prior year period as a result of unfavorable acquisition mix, higher incentive compensation costs and $1 million of restructuring costs to further consolidate transformer manufacturing operations.

Net sales in the Engineered Solutions segment increased by $24 million (23%), from $105 million for the three months ended November 30, 2010 to $129 million for the three months ended November 30, 2011. Excluding the impact of foreign currency rates (which favorably impacted first quarter fiscal 2012 sales by $1 million) and the $24 million of sales from the recently acquired Weasler, core sales were unchanged. Demand and the related sales for products in the agriculture, construction equipment and North American heavy duty-truck markets remained strong while the RV and automotive end markets continued to be challenging as OEM build schedules were reduced. Engineered Solutions segment operating profit was $19 million for the three months ended November 30, 2011. Operating profit margin expansion was the result of continued productivity improvements, favorable acquisition mix and reduced incentive compensation costs.

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