Fort Worth-based global provider of galvanizing services AZZ Inc. reported a fiscal first-quarter profit of $13.2 million on July 6, at the same time reporting decreases across the board in revenue, net income, shares and gross margins
The company’s stock price is currently $52.62 in morning trading, down 6.4 percent.
AZZ (NYSE: AZZ) management reaffirmed the company’s earnings per share guidance range of $2.60-$3.10 for FY18, first quarter earnings per share are down 14.1 percent to $0.51 on revenues of $208.6 million for FY18 compared to FY17’s first quarter $0.81 per share on revenues of $242.7 million. First quarter net income for the company was down 37.1 percent compared to $21.1 million for the same period last year. Additionally, gross margins are down 2.5 percent.
However, this quarter’s SG&A costs were down 5.1 percent compared to last years, and AZZ’s effective tax rate decreased 1.3 percent to 29.3 percent compared to FY17’s 31.6 percent first quarter rate. While incoming orders for the first quarter are down – $193.8 million this quarter compared to $250.5 million this time last year – the company expects to deliver 41 percent of its backlog outside the U.S. this quarter compared to only 25 percent last year.
Revenues for the energy and metal coatings segments for the first quarter are also down, as is operating income and operating margins. AZZ will host a conference call to discuss these results and more at 11 a.m. EST Thursday, July 6. The call will be webcast, here (http://www.azz.com/investor-relations), or can be accessed by dialing (844) 855-9499.
Tom Ferguson, president and CEO of AZZ Inc. commented, “Despite the current market conditions, we are cautiously optimistic that fiscal year 2018 will benefit from improved infrastructure project spending during the second half of the year. We are committed and focused on delivering organic growth and driving operational efficiencies, by investing in new organic growth initiatives, including additional metal coatings offerings to drive future sales and maintaining an active M&A program to support our strategic growth initiatives. Looking forward, we are reaffirming our previously issued fiscal 2018 guidance of earnings per share in the range of $2.60 to $3.10 per diluted share and annual sales in the range of $880 million to $950 million. We expect to be even better positioned when overall market conditions improve.”