AZZ Profit Rises, Guides Q3 Below Consensus; Cuts FY14 View - Update

(RTTNews) - Electrical equipment maker AZZ Inc. (AZZ) Friday reported a higher second-quarter profit, reflecting 24 percent growth in net sales. The company forecast third-quarter earnings per share and revenues below analysts' consensus, and cut its fiscal 2014 view, citing continuing delay in new construction. However, David Dingus, president and chief executive officer of the company said, "Despite the continued sluggish economic conditions in our served markets, combined with significant project delays, we anticipate that the net earnings for fiscal 2014 will reflect an improvement over fiscal 2013."

In the second quarter, the company's net income increased to $16.36 million or $0.64 per share, from $15.87 million or $0.62 per share in the prior year. On an adjusted basis, earnings for the recent quarter were $0.57 per share, while the company posted $0.65 per share last year.

On average, four analysts polled by Thomson Reuters expected the company to earn $0.66 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 24 percent to $189.78 million from $153.39 million for the same quarter last year. Analysts expected revenue of $202.83 million for the quarter.

Revenues from Electrical and Industrial Products and Services Segment climbed 57 percent, while Galvanizing Service segment revenues were $85.6 million, down from $86.9 million a year earlier.

Looking ahead to the third quarter, the company expects earnings to be in the range of $0.65 to $0.75 per share, on revenues of $210 million to $230 million. Analysts expect the company to report third-quarter profit per share of $0.95, on revenue of $248.03 million.

For fiscal 2014, the company now expects earnings to be in the range of $2.45 and $2.65 per share, down from the earlier guidance of $2.65 to $2.95 per share. Revenues are expected to be between $780 million and $810 million, lower than $825 million to $900 million projected earlier.

Analysts expect the company to report fiscal 2014 profit per share of $2.83, on revenue of $844.56 million.

The board also declared a quarterly cash dividend of $0.14 per share, to shareholders on record October 11, 2013, payable on October 25. AZZ closed Thursday's regular trading at $43.11 on the NYSE.