Actuant Sales Fall 25% In 2Q

Actuant Corp., Milwaukee, WI, reported sales for the second quarter ended Feb. 28, 2009, were $300 million, down 25% from 2008. Core sales declined 27%. Profit for the quarter declined 86% to $3.2 million.
 
For the first six months, sales were $680 million, 17% lower than the prior year period. Profit was down 70% to $$14.8 million.
 
Normal seasonal weakness in the second quarter was compounded by he global economic conditions. The diversified industrial company will continue to implement restructuring and cost reduction actions to help offset the weaker demand, said CEO Robert C. Arzbaecher. We have reduced headcount, consolidated facilities, eliminated shifts and established short work week schedules to better align our production, inventory and costs with lower customer demand. These actions drove a 10% headcount reduction in our second quarter alone.  
 
Industrial segment sales for the second quarter were $72 million, 18% lower than sales in the second quarter of 2008. Excluding foreign currency exchange rates, sales dropped 13%, primarily on weaker end market demand and customer inventory destocking.  
 
Energy segment sales grew 37% in the second quarter to $60 million. The acquisitions of Cortland and Superior Plant Services contributed 48% to sales even as the stronger U.S. dollar reduced sales by 16%. Higher demand for oil & gas and power generation maintenance products and services contributed 5% to the sales growth.
 
Sales in the Electrical segment declined 32% to $92 million, reflecting weak demand from marine, retail and transformer customers, impact from SKU reductions in the European Electrical product line and the loss of certain retail business in North America. Headcount in the segment was reduced by 8% during the quarter, and about 30% over the last year.
 
Second quarter Engineered Solutions sales fell 42% to $76.7 million. The segment's headcount was reduced by about 18% during the quarter.