The 2020 Mid-Year Economic Update_long

Actuant Sales Up Slightly in Third Quarter

Industrial and energy segment sales increased, while engineered solutions segment sales declined.

Actuant Corp. (NYSE: ATU), Milwaukee, WI, reported sales for the third quarter ended May 31, 2013, of $344.2 million, a 0.3 percent increase compared to the same period a year earlier. The company reported a loss of $93 million for the quarter, compared to a year-ago profit of $34.4 million.

Industrial segment sales were $111 million during the third quarter, 1 percent higher than the prior year. Excluding the 1 percent negative impact of foreign currency translation, core sales increased 2 percent due in part to higher global Integrated Solutions, bolting and mining MRO tool sales. Europe and the Asia Pacific region, including China, continue to experience year-over-year core sales declines, albeit at a more modest sequential pace. Third quarter operating profit margin increased 120 basis points to 29.1 percent.

Energy segment sales increased 3 percent year-over-year to $99 million. Excluding the negative 2 percent impact from foreign currency translation, core sales were 5 percent from the prior year. Deep water related umbilical, cable and rope revenues grew double digits with strong market demand and catch up of deferred shipments from earlier in the year. Cortland’s non-energy markets, such as defense, continued to experience weak activity levels. Hydratight’s core sales also grew during the quarter reflecting solid MRO spending in global oil & gas. Third quarter operating profit increased 70 basis points year-over-year, primarily the result of the higher volumes.

Engineered Solutions segment sales decreased 2 percent from the prior year to $134 million. Excluding the 8 percent net benefit from acquisitions/divestitures, year-over-year core sales declined 10 percent. Third quarter sales continued to be impacted by difficult comparisons in the North American heavy-duty truck, agriculture and global off-highway equipment markets. Third quarter operating profit margin declined due primarily to the impact of lower volumes, unfavorable sales mix and restructuring costs.

For the first nine months, sales for Actuant were $952.5 million, 0.2 percent less than the same period in the prior year. Actuant reported a nine-month loss of $28.2 million, compared to a year-ago profit of $103.8 million.

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