CHICAGO, Aug. 3 /PRNewswire-FirstCall/ -- JBT
Corporation (NYSE: JBT), a leading global technology solutions
provider to the food processing and air transportation industries,
today reported second quarter 2010 results.
Second quarter inbound orders of $242.4
million and backlog of $319.3
million increased from the prior year quarter by 33 percent
and 24 percent, respectively. Inbound orders matched the
level achieved in the first quarter of 2010 and backlog levels
increased 12 percent sequentially. Revenue for the quarter
was $208.3 million, down 10 percent
from the prior year quarter. On a comparable basis, gross
profit margin was essentially flat from the same period last year
after excluding $1.3 million in
restructuring charges incurred in the prior year quarter.
Second quarter diluted earnings per share from continuing
operations were $0.28, down from
$0.34 for the same period a year ago.
Debt, net of cash, was $124.6
million, down from $128.2
million in the first quarter of 2010.
"We are very pleased with our second quarter order activity.
Inbound orders and backlog were up significantly
year-over-year, indicative of the steady recovery we are seeing in
many of our market segments. We are encouraged with this
trend and are cautiously optimistic that our end markets will
continue to improve," said Charlie
Cannon, Chairman and Chief Executive Officer. "Our
second quarter revenue and earnings were in line with our
expectations. Based on the increase in our backlog and
continued improving market conditions, we are maintaining our
full-year earnings guidance range of $1.15-$1.30 with substantially stronger
performance expected in the second half of 2010 versus the first
half of the year."
JBT FoodTech
JBT FoodTech's second quarter revenue of $135.6 million declined 7 percent from the prior
year quarter as higher current year demand for freezing and protein
processing product lines was more than offset by unfavorable
year-over-year comparisons due to the delivery of two large
projects totaling $30.1 million in
the second quarter of 2009. JBT FoodTech's operating profit
was $15.2 million, down 8 percent
year-over-year due to the lower volume, partially offset by lower
expenses from cost reduction initiatives implemented last year and
the absence of restructuring charges of $0.7
million recorded in the second quarter of 2009.
Operating margin for the quarter was 11.2 percent.
Second quarter inbound orders of $126.8 million increased 14 percent or 11 percent
in constant currencies from the prior year quarter, driven
primarily by higher demand for freezing and protein processing
product lines from the bakery and poultry market segments.
Inbound orders were largely unchanged from the first quarter
of 2010. Backlog of $114.6
million declined 4 percent but remained flat in constant
currencies when compared to the prior year quarter. Backlog
declined 7 percent sequentially.
JBT AeroTech
JBT AeroTech's second quarter revenue of $72.0 million declined 14 percent from the prior
year quarter primarily due to the completion of the 2009 U.S. Air
Force Halvorsen loader order as well as lower ground support
equipment volume, reflecting the lower backlog levels from previous
quarters. JBT AeroTech's operating profit for the quarter was
$3.9 million, down 35 percent
year-over-year, and operating margin was 5.4 percent, down 180
basis points from the prior year quarter. This decline was
mainly due to lower Halvorsen revenue and competitive pricing
pressure in Airport Services. Partially offsetting this
decline was profit improvement in ground support equipment,
reflecting the benefit of cost reduction initiatives, as well as
the absence of restructuring charges of $0.6
million recorded in the prior year quarter. AeroTech
order activity has increased significantly year-over-year, most
notably in the ground support equipment and passenger boarding
bridge product lines, reflecting continued improvement in the
airline and airfreight industries. Inbound orders totaled
$114.7 million, up 65 percent from
the prior year quarter. Inbound orders remained nearly
constant with the strong first quarter rates. Backlog of
$204.7 million improved
year-over-year and sequentially by 48 percent and 26 percent,
respectively.
Corporate Items
Corporate items excluding net interest expense were $4.7 million, a reduction of $0.7 million from the same period in 2009,
primarily reflecting lower residual pension expense due to the
freeze of the company's U.S. defined benefit plan at the end of
2009.
Cash generated from operating activities in the quarter was
$9.5 million. The company ended
the quarter with debt, net of cash, of $124.6 million, down from $128.2 million at the end of the first quarter of
2010. Net interest expense for the quarter was $2.0 million, a reduction of $0.3 million from the prior year quarter,
reflecting a lower interest rate due to the expiration of a
$25 million interest rate swap in the
first quarter of 2010.
The year-to-date tax rate from continuing operations was 34.5
percent.
Capital expenditures for the quarter were $4.4 million, and depreciation and amortization
was $5.4 million.
2010 Outlook
The company is reaffirming its full-year 2010 earnings guidance
of $1.15-$1.30 per diluted share.
The lower end of range assumes the economic recovery stalls
while the upper end of the range assumes the pace of the recovery
continues to accelerate.
Second Quarter Earnings Conference Call
The company will hold a conference call at 9:00 AM EDT on Wednesday,
August 4, 2010, to discuss the second quarter 2010 results.
The call can be accessed live by dialing (877) 235-3250 or
(706) 643-5005 and using conference ID 86131869 or through the
Investor Relations link on JBT Corporation's website at
http://ir.jbtcorporation.com. A replay of the call will be
available through August 11, 2010 and
can be accessed by dialing (800) 642-1687 or (706) 645-9291 and
referencing pass code 86131869. A rebroadcast also will
available on the company's Investor Relations website.
JBT Corporation (NYSE: JBT) is a leading global technology
solutions provider to the food processing and air transportation
industries. JBT Corporation designs, manufactures, tests and
services technologically sophisticated systems and products for
regional and multi-national industrial food processing customers
through its JBT FoodTech segment and for domestic and international
air transportation customers through its JBT AeroTech segment.
JBT Corporation employs approximately 3,300 people worldwide
and operates sales, service, manufacturing and sourcing operations
located in over 25 countries. For more information, please
visit www.jbtcorporation.com.
This release contains forward-looking statements as defined
in the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are information of a
non-historical nature and are subject to risks and uncertainties
that are beyond the Company's ability to control. These risks
and uncertainties are described under the caption "Risk Factors" in
the Company's 2009 Annual Report on Form 10-K filed by the Company
with the Securities and Exchange Commission that may be accessed on
the Company's website. The Company cautions shareholders and
prospective investors that actual results may differ materially
from those indicated by the forward-looking statements.
FINANCIAL TABLES FOLLOW
JBT CORPORATION
|
|
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
|
|
(Unaudited and in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
|
2010
|
|
2009
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
208.3
|
$
|
230.2
|
|
$
|
377.3
|
$
|
399.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
153.9
|
|
171.2
|
|
|
276.0
|
|
293.3
|
|
Selling, general and administrative expense
|
|
35.4
|
|
38.0
|
|
|
70.6
|
|
72.8
|
|
Research and development expense
|
|
4.3
|
|
4.5
|
|
|
8.6
|
|
8.5
|
|
Total costs and
expenses
|
|
193.6
|
|
213.7
|
|
|
355.2
|
|
374.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense) income,
net
|
|
(0.3)
|
|
0.6
|
|
|
0.2
|
|
0.9
|
|
Net interest expense
|
|
(2.0)
|
|
(2.3)
|
|
|
(3.9)
|
|
(4.5)
|
|
Income from continuing
operations before income taxes
|
|
12.4
|
|
14.8
|
|
|
18.4
|
|
21.0
|
|
Provision for income
taxes
|
|
4.2
|
|
5.1
|
|
|
6.3
|
|
7.2
|
|
Income from continuing
operations
|
|
8.2
|
|
9.7
|
|
|
12.1
|
|
13.8
|
|
Loss from discontinued
operations, net of taxes
|
|
(0.1)
|
|
-
|
|
|
-
|
|
-
|
|
Net income
|
$
|
8.1
|
$
|
9.7
|
|
$
|
12.1
|
$
|
13.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
$
|
0.29
|
$
|
0.35
|
|
$
|
0.43
|
$
|
0.50
|
|
Income from discontinued operations
|
|
-
|
|
-
|
|
|
-
|
|
-
|
|
Basic earnings per share
|
$
|
0.29
|
$
|
0.35
|
|
$
|
0.43
|
$
|
0.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
$
|
0.28
|
$
|
0.34
|
|
$
|
0.42
|
$
|
0.49
|
|
Income from discontinued operations
|
|
-
|
|
-
|
|
|
-
|
|
-
|
|
Diluted earnings per share
|
$
|
0.28
|
$
|
0.34
|
|
$
|
0.42
|
$
|
0.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
28.2
|
|
27.6
|
|
|
28.2
|
|
27.6
|
|
Diluted
|
|
29.1
|
|
28.5
|
|
|
29.0
|
|
28.3
|
|
|
|
|
|
|
|
|
|
|
|
|
JBT CORPORATION
|
|
BUSINESS SEGMENT
DATA
|
|
(Unaudited and in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2010
|
|
2009
|
|
|
2010
|
|
2009
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JBT FoodTech
|
$
|
135.6
|
$
|
145.5
|
|
$
|
237.1
|
$
|
240.4
|
|
JBT AeroTech
|
|
72.0
|
|
83.7
|
|
|
139.4
|
|
157.3
|
|
Other revenue (1) and
intercompany eliminations
|
|
0.7
|
|
1.0
|
|
|
0.8
|
|
1.5
|
|
Total revenue
|
$
|
208.3
|
$
|
230.2
|
|
$
|
377.3
|
$
|
399.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating
profit
|
|
|
|
|
|
|
|
|
|
|
JBT FoodTech
|
$
|
15.2
|
$
|
16.5
|
|
$
|
22.9
|
$
|
24.3
|
|
JBT AeroTech
|
|
3.9
|
|
6.0
|
|
|
8.7
|
|
11.5
|
|
Total segment operating
profit
|
|
19.1
|
|
22.5
|
|
|
31.6
|
|
35.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate items
|
|
|
|
|
|
|
|
|
|
|
Corporate expense
|
|
(4.0)
|
|
(4.0)
|
|
|
(7.7)
|
|
(7.0)
|
|
Other expense, net
(2)
|
|
(0.7)
|
|
(1.4)
|
|
|
(1.6)
|
|
(3.3)
|
|
Net interest expense
|
|
(2.0)
|
|
(2.3)
|
|
|
(3.9)
|
|
(4.5)
|
|
Total corporate items
|
|
(6.7)
|
|
(7.7)
|
|
|
(13.2)
|
|
(14.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations before income taxes
|
$
|
12.4
|
$
|
14.8
|
|
$
|
18.4
|
$
|
21.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other revenue comprises
certain gains and losses on derivatives related to foreign exchange
exposure.
|
|
(2) Other expense, net,
generally includes stock-based compensation, residual expenses
associated with other employee benefits, LIFO adjustments, foreign
exchange gains and losses, and the impact of unusual or strategic
transactions not representative of segment operations.
|
|
|
|
|
|
|
|
|
|
|
|
JBT CORPORATION
|
|
BUSINESS SEGMENT
DATA
|
|
(Unaudited and in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Inbound Orders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JBT FoodTech
|
$
|
126.8
|
$
|
111.4
|
$
|
255.0
|
$
|
210.4
|
|
JBT AeroTech
|
|
114.7
|
|
69.5
|
|
229.4
|
|
157.8
|
|
Other and intercompany
eliminations
|
|
0.9
|
|
1.4
|
|
1.0
|
|
2.0
|
|
|
|
|
|
|
|
|
|
|
|
Total inbound orders
|
$
|
242.4
|
$
|
182.3
|
$
|
485.4
|
$
|
370.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
|
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
Order Backlog
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JBT FoodTech
|
$
|
114.6
|
$
|
119.0
|
|
|
|
|
|
JBT AeroTech
|
|
204.7
|
|
138.0
|
|
|
|
|
|
Other and intercompany
eliminations
|
|
-
|
|
(0.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total order backlog
|
$
|
319.3
|
$
|
256.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JBT CORPORATION
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
2010
|
|
2009
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
8.6
|
$
|
14.4
|
|
Trade receivables,
net
|
|
141.1
|
|
149.3
|
|
Inventories
|
|
117.1
|
|
107.0
|
|
Other current assets
|
|
33.7
|
|
32.7
|
|
Total current
assets
|
|
300.5
|
|
303.4
|
|
|
|
|
|
|
|
Property, plant and equipment,
net
|
|
117.3
|
|
126.5
|
|
Other assets
|
|
93.6
|
|
103.2
|
|
Total assets
|
$
|
511.4
|
$
|
533.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable, trade and
other
|
$
|
66.3
|
$
|
65.9
|
|
Advance payments and progress
billings
|
|
66.6
|
|
69.5
|
|
Other current
liabilities
|
|
86.2
|
|
98.2
|
|
Total current
liabilities
|
|
219.1
|
|
233.6
|
|
|
|
|
|
|
|
Long-term debt, less current
portion
|
|
130.1
|
|
131.8
|
|
Accrued pension and other
postretirement benefits,
|
|
|
|
|
|
less current
portion
|
|
71.6
|
|
77.1
|
|
Other liabilities
|
|
28.8
|
|
28.8
|
|
Common stock, paid-in capital
and retained earnings
|
|
107.2
|
|
97.8
|
|
Accumulated other comprehensive
loss
|
|
(45.4)
|
|
(36.0)
|
|
Total
stockholders' equity
|
|
61.8
|
|
61.8
|
|
Total liabilities and
stockholders' equity
|
$
|
511.4
|
$
|
533.1
|
|
|
|
|
|
|
JBT CORPORATION
|
|
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(Unaudited and in
millions)
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
Cash Flows From Operating
Activities:
|
|
|
|
|
|
Income from
continuing operations
|
$
|
12.1
|
$
|
13.8
|
|
|
|
|
|
|
|
Adjustments to reconcile income
to cash provided by operating activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
11.0
|
|
10.6
|
|
Pension and other
post retirement benefit expense
|
|
(0.9)
|
|
4.3
|
|
Other - non-cash
expenses
|
|
5.7
|
|
9.7
|
|
|
|
|
|
|
|
Changes in operating assets and
liabilities:
|
|
|
|
|
|
Trade accounts
receivable, net
|
|
2.3
|
|
32.3
|
|
Inventories
|
|
(16.6)
|
|
(12.4)
|
|
Accounts payable,
trade and other
|
|
3.9
|
|
(0.7)
|
|
Advance payments
and progress billings
|
|
0.9
|
|
(13.1)
|
|
Other - assets and
liabilities
|
|
(16.5)
|
|
(16.6)
|
|
|
|
|
|
|
|
Cash provided by continuing
operating activities
|
|
1.9
|
|
27.9
|
|
|
|
|
|
|
|
Cash Flows From Investing
Activities:
|
|
|
|
|
|
Acquisitions
|
|
-
|
|
(6.7)
|
|
Capital
expenditures
|
|
(7.3)
|
|
(9.8)
|
|
Proceeds on
disposal of assets and other
|
|
1.5
|
|
0.4
|
|
|
|
|
|
|
|
Cash required by continuing
investing activities
|
|
(5.8)
|
|
(16.1)
|
|
|
|
|
|
|
|
Cash Flows From Financing
Activities:
|
|
|
|
|
|
Proceeds
(payments) on term debt
|
|
5.2
|
|
(0.1)
|
|
Net payments on
credit facilities
|
|
(4.2)
|
|
(36.0)
|
|
Dividends
paid
|
|
(4.2)
|
|
(3.9)
|
|
Other
|
|
1.6
|
|
0.7
|
|
|
|
|
|
|
|
Cash required by financing
activities
|
|
(1.6)
|
|
(39.3)
|
|
|
|
|
|
|
|
Effect of foreign exchange rate
changes on cash and cash equivalents
|
|
(0.3)
|
|
1.0
|
|
|
|
|
|
|
|
Decrease in cash and cash
equivalents
|
|
(5.8)
|
|
(26.5)
|
|
|
|
|
|
|
|
Cash and cash equivalents,
beginning of period
|
|
14.4
|
|
43.6
|
|
|
|
|
|
|
|
Cash and cash equivalents, end
of period
|
$
|
8.6
|
$
|
17.1
|
|
|
|
|
|
|
JBT CORPORATION
|
|
RECONCILIATION OF NON-GAAP
MEASURES
|
|
(Unaudited and in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2010
|
|
2009
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT (Non-GAAP
measure)
|
$
|
14.4
|
$
|
17.1
|
|
$
|
22.3
|
$
|
25.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest expense
|
|
(2.0)
|
|
(2.3)
|
|
|
(3.9)
|
|
(4.5)
|
|
Provision for income
taxes
|
|
(4.2)
|
|
(5.1)
|
|
|
(6.3)
|
|
(7.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
8.2
|
|
9.7
|
|
|
12.1
|
|
13.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued
operations, net of taxes
|
|
(0.1)
|
|
-
|
|
|
-
|
|
-
|
|
Net income
|
$
|
8.1
|
$
|
9.7
|
|
$
|
12.1
|
$
|
13.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2010
|
|
2009
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
208.3
|
$
|
230.2
|
|
$
|
377.3
|
$
|
399.2
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT (Non-GAAP
measure)
|
$
|
14.4
|
$
|
17.1
|
|
$
|
22.3
|
$
|
25.5
|
|
EBIT as percent of Revenue
(Non-GAAP measure)
|
|
6.9%
|
|
7.4%
|
|
|
5.9%
|
|
6.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
$
|
8.1
|
$
|
9.7
|
|
$
|
12.1
|
$
|
13.8
|
|
Net Income as percent of
Revenue
|
|
3.9%
|
|
4.2%
|
|
|
3.2%
|
|
3.5%
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE JBT Corporation
Copyright g. 3 PR Newswire