Industrial goods manufacturer Robbins & Myers Inc. (RBN) announced Tuesday that second quarter profit declined from last year, hurt by significant increase in order cancellations, and lackluster performance of its segments. The company also provided earnings forecast for the third quarter, which failed to meet the analysts' expectations. In addition, the company lowered its outlook for fiscal 2009, reflecting the unfavorable economic conditions.
The Dayton, Ohio-based company reported net income of $15.1 million or $0.46 per share, down from $16.3 million or $0.47 per share in the prior year quarter. On average, 5 analysts polled by Thomson Reuters expected the company to earn $0.41 per share for the second quarter. Analysts' estimate typically excludes special items.
Second quarter sales declined 11% to $163.82 million from $184.93 million in the same quarter of last year. Excluding the effects of currency translation, sales fell by 3%. Five analysts had a consensus revenue estimate of $174.14 million for the second quarter.
Sales from the Fluid management segment dropped to $72.3 million from $76.5 million, Process Solutions' sales fell to $63.1 million from $75.0 million, and Romaco had sales of $28.5 million, down from $33.5 million in the year-ago quarter.
Orders for the second quarter decreased 41% to $128 million from $216 million in the previous year quarter. Excluding the impact from currency translation, orders dropped 35%.
Peter Wallace, president and CEO of Robbins & Myers, said, The market declines experienced during our first quarter continued into the second quarter. We experienced a significant reduction in orders as customers took the opportunity to adjust their requirements for future product shipments, and this resulted in a rise in order cancellations.
The company also said its workforce reduction will continue into the third quarter, and it plans to implement government-supported employee furlough programs in certain international locations.
In addition, Robbins & Myers said that its board has approved its regular cash dividend payment of $0.04 per share, payable on May 8 to shareholders on record April 10, 2009.
For the first half of 2009, Robbins & Myers posted net income of $32.3 million or $0.96 per share, compared to $30.3 million or $0.88 per share in the previous year period.
Sales for the year-to-date period declined to $341.8 million from $358.5 million in the preceding year period.
For the third quarter, Robbins & Myers anticipates earnings of $0.20 to $0.30 per share. Street expects earnings of $0.40 per share for the third quarter.
For fiscal 2009, the company lowered its earnings outlook to a range of $1.35 to $1.65 per share from its prior expectation of $1.80 to $2.00 per share. Analysts expect the company to report earnings of $1.74 per share on revenue of $716.73 million for the year.
Robbins & Myers closed Tuesday's regular trading session at $16.39, down $1.13 or 6.45%. In the after-hours, the shares further lost 89 cents or 5.43%.
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