Actuant Introduces FY17 Guidance - Quick Facts

(RTTNews) - Actuant Corp. (ATU) announced it currently projects fiscal 2017 sales in the range of $1.075 - 1.125 billion, reflecting a core sales decline of 2-6%. EPS, excluding restructuring charges, is expected to be in the range of $1.00-1.20, reflecting lower sales and a higher effective tax rate, offset by the benefit of cost reduction actions. Full year free cash flow is expected to be in the range of $85-95 million.

Randy Baker, President and CEO of Actuant, said: "Looking into fiscal 2017, we currently do not see a catalyst to meaningfully improve overall end market conditions. The first half in particular is expected to continue recent core sales trends, OEM destocking, and difficult comparisons, notably in large project activity in Energy. We do expect these factors to give way to sequential year-over-year improvement in the back half of the fiscal year."

Actuant projects first-quarter sales in the $260-270 million range on a 14-16% core sales decline, and EPS, excluding restructuring charges, of $0.14-0.19.

Fourth-quarter earnings and EPS were $17.4 million, and $0.29 per share, compared to $22.1 million and $0.37 per share, respectively, in the comparable prior year quarter. Excluding items, adjusted fourth quarter EPS was $0.30 compared to $0.37 in the prior year quarter due primarily to lower prior year income tax expense.

Consolidated sales for the fourth quarter were $276 million, 8% below the $300 million in the comparable prior year quarter. Core sales declined 11%.