FORT WORTH, Texas, June 26 /PRNewswire-FirstCall/ -- AZZ
incorporated (NYSE:AZZ), a manufacturer of electrical products and
a provider of galvanizing services, today announced unaudited
financial results for the first quarter ended May 31, 2009.
Revenues for the first quarter were $95.5 million compared to $99.9
million for the same quarter last year, a decrease of 5 percent.
Net income for the quarter was $9.9 million, or $0.80 per diluted
share, compared to net income of $10.1 million, or $0.82 per
diluted share, in last year's first fiscal quarter. Backlog at the
end of the first quarter was $150.1 million. Backlog at the end of
the first quarter of FY 2009 was $141.8 million and $174.8 million
at February 28, 2009. Incoming orders for the first quarter were
$70.7 million while shipments for the quarter totaled $95.5
million, resulting in a book to ship ratio of 74 percent. There
were no significant international orders received in the first
quarter of FY 2010. Based upon current customer requested delivery
dates and our production schedules, 91 percent of the backlog at
May 31, 2009 is expected to ship in the current fiscal year. Of the
backlog of $150.1 million, 39 percent is to be delivered outside of
the U.S. Revenues for the Electrical and Industrial Products
Segment for the first quarter of FY 2010 were $55.4 million as
compared to $52.0 million for the same quarter last year, an
increase of 7 percent. Operating income for the segment increased
33 percent to $10.5 million compared to $7.9 million in the same
period last year. Operating margins for the first quarter were 19
percent. Revenues for the Company's Galvanizing Service Segment for
the first quarter were $40.1 million, compared to the $48.0 million
in the same period last year, a decrease of 16 percent. Operating
income was $12.8 million as compared to $13.4 million in the prior
period. Tonnage shipped decreased 12 percent when compared to the
prior period. Operating margins for the first quarter were 32
percent. David H. Dingus, president and chief executive officer of
AZZ incorporated, commented, "Regarding our Electrical and
Industrial Products Segment, again this quarter, we are extremely
pleased with the operating performance. As we indicated last
quarter, we continue to monitor closely our market opportunities
and our operating structure due to the changing and challenging
market conditions. Incoming orders slowed in the fourth quarter of
our fiscal 2009 and we have seen a continuation of that trend in
the first quarter of our new fiscal year. While our quotation
levels have increased during the quarter when compared to the
fourth quarter of last fiscal year, we have not seen a
corresponding increase in our incoming order rate. Incoming orders
continue to be slower than desired due to increased customer
deliberation on the release of new orders pertaining to projects
and increased competitive pressure, particularly on large
international orders, combined with the typical delay we see
between quotations and orders. We still anticipate that our backlog
will level off at the end of the second quarter followed by modest
increases in the last half of the fiscal year. Despite the
improvement in our quotation levels, we anticipate a further
deterioration of our backlog in the second quarter of 10 to 15
percent. Competitive conditions in some of our international
markets could improve allowing us to secure additional business
which could offset this projected deterioration. If market
conditions improve, as well as an expansion of infrastructure
projects, we are well positioned to capitalize on these
improvements. We will continue our efforts to expand our served
markets and product offerings, and believe that the strength of our
historical operating performance, combined with the excellent
positioning of our products, provide an excellent platform from
which to grow once we do see market recovery and continue the trend
of increasing quotation levels. The Galvanizing Services Segment
achieved outstanding operating performance considering the market
conditions in which we are operating. We continue to demonstrate
our commitment to quality and service during these market
conditions and take advantage of all opportunities to maintain
market pricing. The lower zinc cost in our first quarter combined
with increased operating efficiencies, facilitated excellent
margins. Our infrastructure work remained at levels consistent with
the fourth quarter of the last fiscal year. We remain committed to
our market approach and believe that we will continue to report
strong operating results, despite the challenges we face. Margins
for the balance of the fiscal year are expected to be below that
achieved in the first quarter, but should remain above the
historical levels that we have talked to you about before of 18 to
22 percent." Mr. Dingus concluded, "Management of pricing,
expansion of domestic and international markets, and seeking out
new product opportunities to further enhance our strategic position
continue to be the focus and emphasis of our activities. Based upon
the evaluation of information currently available to management, we
are revising our guidance for revenues to be in the range of $370
million to $390 million. Our earning guidance is revised and
anticipated to be within the range of $2.70 to $2.90. Achievement
of these projections would be our 23rd consecutive year of
profitability and the second best year in the history of the
company. Our estimates assume that we will not have any appreciable
change in our current market conditions, competitive activity or
significant delays in the delivery or timing in the receipt of
orders of our electrical and industrial products, and demand for
our galvanizing services." AZZ incorporated will conduct a
conference call to discuss financial results for the first quarter
of fiscal year 2010 at 11:00 A.M. ET on Friday, June 26, 2009.
Interested parties can access the conference call by dialing (800)
860-2442 or (412) 858-4600 (international). The call will be web
cast via the Internet at http://www.azz.com/AZZinvest.htm. A replay
of the call will be available for three days at (877) 344-7529 or
(412) 317-0088 (international), confirmation #431648, or for 30
days at http://www.azz.com/AZZinvest.htm. AZZ incorporated is a
specialty electrical equipment manufacturer serving the global
markets of power generation, transmission and distribution and
industrial, as well as a leading provider of hot dip galvanizing
services to the steel fabrication market nationwide. Except for the
statements of historical fact, this release may contain
forward-looking statements that involve risks and uncertainties
some of which are detailed from time to time in documents filed by
the Company with the SEC. Those risks and uncertainties include,
but are not limited to: changes in customer demand and response to
products and services offered by the company, including demand by
the electrical power generation markets, electrical transmission
and distribution markets, the industrial markets, and the hot dip
galvanizing markets; prices and raw material costs, including zinc
and natural gas which are used in the hot dip galvanizing process;
changes in the economic conditions of the various markets the
Company serves, foreign and domestic, customer requested delays of
shipments, acquisition opportunities, currency exchange rates,
adequacy of financing, and availability of experienced management
employees to implement the Company's growth strategy. The Company
can give no assurance that such forward-looking statements will
prove to be correct. We undertake no obligation to affirm, publicly
update or revise any forward-looking statements, whether as a
result of information, future events or otherwise. ---Financial
tables follow--- AZZ incorporated Condensed Consolidated Statement
of Income (in thousands except per share amounts) Three Months
Ended May 31, 2009 May 31, 2008 (unaudited) (unaudited) ===========
=========== Net sales $95,492 $99,958 Costs and Expenses: Cost of
Sales 65,804 73,689 Selling, General and Administrative 12,124
9,856 Interest Expense 1,686 1,121 Net (Gain) Loss on Sales or
Insurance Settlement of Property, Plant and Equipment (5) 3 Other
(Income) (81) (484) Other Expense - - $79,528 $84,185 Income before
income taxes and accounting change $15,964 $15,773 Income Tax
Expense 6,064 5,650 Income Before Cumulative Effect of Changes in
Accounting Principles 9,900 10,123 Cumulative Effect of Changes in
Accounting Principles (Net of Tax) - - Net income $9,900 $10,123
Net income per share Basic $0.81 $0.83 Diluted $0.80 $0.82 Diluted
average shares outstanding 12,410 12,290 Segment Reporting (in
thousands) Three Months Ended May 31, 2009 2008 (unaudited)
(unaudited) Net Sales: Electrical and Industrial Products $55,386
$52,006 Galvanizing Services 40,106 47,952 $95,492 $99,958 Segment
Operating Income (a): Electrical and Industrial Products $10,512
$7,931 Galvanizing Services 12,793 13,358 Total Segment Operating
Income $23,305 $21,299 Condensed Consolidated Balance Sheet (in
thousands) May 31, February 28, 2009 2009 (unaudited) (audited)
=========== =========== Assets: Current assets $185,938 $182,023
Net property, plant and equipment $87,962 $87,667 Other assets, net
$86,165 $85,025 ------- ------- Total assets $360,065 $354,715
======== ======== Liabilities and shareholders' equity: Current
liabilities $49,237 $58,371 Long term debt due after one year
$100,000 $100,000 Other liabilities $10,140 $9,232 Shareholders'
equity $200,688 $187,112 -------- -------- Total liabilities and
shareholders' equity $360,065 $354,715 ======== ======== Condensed
Consolidated Statement of Cash Flows (in thousands) Three Months
Ended May 31, 2009 May 31, 2008 (unaudited) (unaudited) ===========
=========== Net cash provided by (used in) operating activities
$13,740 ($1,884) Net cash provided by (used in) investing
activities ($3,700) ($86,220) Net cash provided by (used in)
financing activities $65 $100,094 Net cash provided by (used in)
effect of exchange rate $26 Net increase (decrease) in cash and
cash equivalents $10,131 $11,990 Cash and cash equivalents at
beginning of period $47,558 $2,227 --------- --------- Cash and
cash equivalents at end of period $57,689 $14,217 ======= =======
Contact: Dana Perry, Senior Vice President - Finance and CFO AZZ
incorporated 817-810-0095 Internet: http://www.azz.com/ Lytham
Partners 602-889-9700 Joe Dorame, Joe Diaz or Robert Blum Internet:
http://www.lythampartners.com/ DATASOURCE: AZZ incorporated
CONTACT: Dana Perry, Senior Vice President - Finance and CFO of AZZ
incorporated, +1-817-810-0095; or Joe Dorame, Joe Diaz, or Robert
Blum, +1-602-889-9700, all of Lytham Partners, for AZZ incorporated
Web Site: http://www.azz.com/
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