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$LDL said acquisition was financed through combination of cash on hand and $85MM of borrowings from amended revolving credit facility, which was increased to $175MM. The amended facility provides additional capacity to support organic growth programs, fund capital investments and continue pursuits of attractive acquisitions.
$CBT elected Cynthia Arnold to its BoD, effective Jan. 18, 2018. She was also appointed a member of the Compensation Committee. $CBT elected Sue Rataj as Non-Executive Chair of the Board of Directors, effective March 9, 2018. $CBT said Roderick MacLeod will retire from the Board, effective at annual meeting that will be held on March 8, 2018.
$XYL agreed to buy Pure Technologies Ltd. for an enterprise value of $397MM. Pure's BoD has unanimously approved the transaction and recommends that Pure shareholders vote in favor of the transaction. It is expected to close in 1Q18. Xylem expects to achieve at least $12MM in annual cost synergies within two years of closing.
$DCI reported a 5% YoY growth in earnings to $60.9MM, or $0.46 per share, for 1Q18. Excluding items, EPS grew 21% YoY. Sales increased 16.6% to $644.8MM, with Engine segment up 25% and Industrial up 1.8%. The company expects FY18 GAAP EPS between $1.90 and $2.04, up 6% from prior forecast. Sales to increase 10-14% vs. the prior forecast of 4-8%.
$MHK has agreed to acquire Godfrey Hirst Group. Godfrey Hirst's sales were about US$334MM in their most recent fiscal year, which ended June 30, 2017. The transaction is expected to be completed during 1H18, pending customary conditions and approvals. $MHK expects the transaction to be accretive to EPS in the first twelve months.
In FY18, $ESE expects sales to grow approx 13% YoY, and adjusted EBITDA to increase 15-17%. The company projects FY18 GAAP EPS to be in the range of $2.30 to $2.40 per share, including the profit contributions from the recent acquisitions.
$ESE, a provider of engineered products and solutions, reported 30% jump in net sales to $207MM in 4Q17. Net income rose to $19.2MM, or $0.74 per share, compared to $16.9MM, or $0.65 per share in the year-over period. On an adjusted basis, net income rose to $0.79 per share.
$CBT has indefinitely idled three of the seven production units at its activated carbon manufacturing facility in Texas, due to reduction in demand. $CBT expects this to result in a pretax charge to earnings of approx. $9MM, of which less than $1MM is cash. Annual savings are estimated to be approx. $6MM, of which approx. $5MM is cash.
During 2Q18, $AZZ's Energy segment revenues fell 6.4% to $91.4MM. Operating income fell to 0 compared to $8.2MM in 2Q17 as gross margins in the segment fell 16.4%. Revenues in the Metal Coatings segment rose 1.6% to $99MM, while operating income rose 55.7% to $23.4MM, mainly due to the $7.3MM realignment charges taken in the segment last year.
$AZZ said its Electrical platform has struggled recently to absorb the impact of Westinghouse bankruptcy and VC Summer closure. This business now faces other operational issues, which the company addressed by appointing Ken Lavelle as new President and General Manager of the Electrical platform.