Actuant Cuts FY17 View For Adj. EPS - Quick Facts

(RTTNews) - Actuant Corp. (ATU), a diversified industrial company, on Wednesday said it expects third-quarter adjusted earnings per share of $0.38-$0.43, and sales of $290 million to $300 million.

Further, the company narrowed fiscal 2017 adjusted earnings per share guidance to a range of $1.10-$1.20 from previously estimated $1.10-$1.30. The company said the revision reflects unfavorable sales mix and investments in growth that are expected to limit further upside to margins in the near term.

The company maintained its full-year sales guidance of $1.075 billion to $1.125 billion, with core sales anticipated to be down 2% to 5%. Previously, the company anticipated core sales down 2%-6%.

Free cash flow is still projected to be in the $85-$95 million range in fiscal 2017.

Randy Baker, President and CEO of Actuant, said, "Our results for the first half of fiscal 2017 have met expectations and give us confidence that we are on track for the year. We have begun to see encouraging indicators within the broad industrial landscape, although the sustainability and trajectory of improvement are yet to be determined. Our sales effectiveness, restructuring and lean revitalization actions are proceeding according to plan."

In the second quarter, net earnings were $5.1 million, or $0.08 per share, compared to a net loss of $159.2 million or $2.70 per share a year ago. Adjusted earnings per share were $0.11, compared to $0.21 last year.

Consolidated sales for the second quarter were $259 million, 2% lower than the $263 million in the prior year. Core sales declined 3% while foreign currency rate changes reduced sales 1% and net acquisitions/divestitures were a 2% sales benefit.