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Actuant maintains outlook as its beats Street on strong Q4

Published: 14:26 28 Sep 2011 EDT

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Actuant (NYSE:ATU) opted to maintain its full year outlook on Wednesday, after reporting stronger-than-expected fourth quarter and full year results.

The diversified industrial company said it continues to expect full year sales growth between 5% and 8%, representing a range of $1.52 to $1.57 billion, and earnings for the full year between $1.80 and $2.00 per share.

For the full year fiscal 2012, analysts are anticipating earnings of $1.92 per share, on $1.60 billion in sales.

For the three months ending August 31, or the company's fourth quarter, Actuant posted net income of $41.4 million, or $0.55 per share, up from a $16.8 million loss, or $0.22 loss per share, a year ago.

Adjusted for discontinued operations, earnings were $37.3 million, or $0.50 per share, a 63% increase over $22.8 million, or $0.31 per share, a year ago.

Revenues for the quarter improved 30% to $403.4 million, from $310.4 million in the same period last year.

Analysts had anticipated earnings of $0.46 for the quarter, on revenues of $397 million.

"Actuant's strong fourth quarter performance reflects terrific execution and continued momentum in our key end markets," said CEO Robert C. Arzbaecher.

"In particular, we were pleased to see consolidated double-digit core sales growth for the sixth straight quarter."

In its industrial segment, where the company provides transportation for large structures, Actuant posted sales of $108.9 million, up 27% from the fourth quarter last year. The growth was driven by strong global demand, new product introductions, and increased focus on vertical markets, the company said.

The energy unit, which offers connection products and services for vital equipment, reported a 35% rise in sales to $82.7 million in the quarter, as capital project activity in the oil and gas industry increased, and sales to the power generation market strengthened.

The electrical division, which provides electrical-based products and services, like harnessing solar power, benefited from the company's December 2010 acquisition of Mastervolt, reflecting stable marine market sales, Actuant said. Its sales in this segment increased to $80.1 million, up 28%.

In its engineered solutions business, which mainly focuses on movement control systems, like hydraulic buttons, sales increased 31% to $131.7 million, on solid demand from the heavy-duty truck, agriculture, and construction equipment markets, the company said.

For the full year, earnings more than quadrupled to $111.6 million, or $1.50 per share, from $24.0 million, or $0.35 per share, in 2010. Adjusted for discontinued items, profits were $124.5 million, or $1.68 per share, above the $1.64 anticipated by analysts. Sales increased by 25% to $1.45 billion.

In other news, Actuant said its board has approved a stock buyback program, under which the company may buy back up to 10%, or seven million shares, of its outstanding stock.

In New York, Actuant shares rose 5.68% to $20.48 per share, as of 1:38 pm EDT.

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