CHICAGO, Nov. 2, 2010 /PRNewswire-FirstCall/ -- JBT
Corporation (NYSE: JBT), a leading global technology solutions
provider to the food processing and air transportation industries,
today reported third quarter 2010 results.
Revenue for the quarter was $216.5
million, up 10 percent from the prior year quarter.
Third quarter diluted earnings per share from continuing
operations were $0.32, up 10 percent
from $0.29 for the same period a year
ago. Gross profit margin declined 150 basis points from the
same period last year, primarily a function of product mix during
the quarter; however, income from continuing operations before
income taxes as a percent of revenue increased to 6.7 percent.
Third quarter inbound orders of $239.5
million and backlog of $342.3
million increased from the prior year quarter by 19 percent
and 31 percent, respectively. Inbound orders were steady
sequentially versus the second quarter of 2010, while backlog
levels increased 7 percent sequentially. Debt, net of cash,
was $132.6 million, up $8.0 million from the second quarter of 2010
primarily due to a $10.2 million
contribution to the Company's U.S. pension plan.
"We are encouraged by the steady flow of our inbound activity
with orders in both our FoodTech and AeroTech segments showing
continued strength. While the economic outlook remains
uncertain in a number of our geographies, we believe the recovery
in demand for our product lines will continue," said Charlie Cannon, Chairman and Chief Executive
Officer. "We are pleased with our third quarter results,
which were led by recovery in product lines that were most
significantly impacted by the recession: specifically, freezing,
protein processing and ground support equipment. Based on
year-to-date performance and better visibility into the fourth
quarter, we are narrowing our 2010 full-year guidance range to
$1.20-$1.28."
JBT FoodTech
JBT FoodTech's third quarter revenue of $124.8 million increased 9 percent from the prior
year quarter, reflecting continued strong demand for freezing and
protein processing product lines, partially offset by softness in
sterilization and tomato processing equipment. JBT FoodTech's
operating profit was $11.9 million,
up 14 percent year-over-year primarily due to higher sales volume,
while operating margin expanded to 9.5 percent. Third quarter
inbound orders of $127.1 million
increased by 2 percent from the prior year quarter and were
essentially in line with the second quarter of 2010. Backlog
of $116.9 million declined 10 percent
from the prior year quarter. Several large orders received in
2008 that remained in backlog at the end of third quarter 2009
impacted the year-over-year comparison. However, backlog
increased 2 percent sequentially.
JBT AeroTech
JBT AeroTech's third quarter revenue of $86.9 million increased 11 percent from the prior
year quarter, as strong order activity in the ground support and
gate equipment product lines from the prior periods converted into
revenue. This was partially offset by lower Halvorsen volume.
JBT AeroTech's operating profit for the quarter was
$6.1 million, up 11 percent
year-over-year, while operating margin was 7.0 percent, steady with
the prior year quarter. Significant margin improvement in the
ground support equipment product line, due to higher volume and a
lower cost structure from past restructuring efforts, was offset by
an unfavorable product mix, primarily resulting from the lower
Halvorsen revenue. Inbound orders totaled $107.6 million, up 47 percent from the prior year
quarter, but down 6 percent sequentially. Order activity for
ground support and gate equipment product lines continue to
improve. Backlog of $225.4
million was up 70 percent year-over-year and up 10 percent
sequentially.
Corporate Items
Corporate items excluding net interest expense were $1.5 million for the quarter, up $0.3 million from the same period in 2009,
primarily reflecting higher corporate staff expenses.
Year-to-date cash generated from operating activities was
$2.4 million, which included the
funding of a $10.2 million
contribution to the Company's U.S. pension plan in the third
quarter of 2010. The Company ended the quarter with debt, net
of cash, of $132.6 million, up from
$124.6 million at the end of the
second quarter of 2010. Net interest expense for the quarter
was $2.0 million, a reduction of
$0.1 million from the prior year
quarter.
The year-to-date tax rate from continuing operations was 34.6
percent.
Year-to-date capital expenditures totaled $13.4 million, and depreciation and amortization
totaled $17.1 million.
2010 Outlook
The Company is updating its full-year 2010 earnings guidance to
$1.20-$1.28 per diluted share,
reflecting year-to-date performance and current backlog levels.
Third Quarter Earnings Conference Call
The Company will hold a conference call at 9:00 AM EDT on Wednesday,
November 3, 2010 to discuss the third quarter 2010 results.
The call can be accessed live by dialing (877) 235-3250 or
(706) 643-5005 and using conference ID 16080182 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 November 10, 2010
and can be accessed by dialing (800) 642-1687 or (706) 645-9291 and
referencing pass code 16080182. 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
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
216.5
|
$
|
196.4
|
$
|
593.8
|
$
|
595.6
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
160.3
|
|
142.4
|
|
436.3
|
|
435.7
|
|
Selling, general and administrative expense
|
|
36.0
|
|
36.4
|
|
106.6
|
|
109.2
|
|
Research and development expense
|
|
4.5
|
|
3.9
|
|
13.1
|
|
12.4
|
|
Total costs and
expenses
|
|
200.8
|
|
182.7
|
|
556.0
|
|
557.3
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net
|
|
0.8
|
|
1.0
|
|
1.0
|
|
1.9
|
|
Net interest expense
|
|
(2.0)
|
|
(2.1)
|
|
(5.9)
|
|
(6.6)
|
|
Income from continuing
operations before income taxes
|
|
14.5
|
|
12.6
|
|
32.9
|
|
33.6
|
|
Provision for income
taxes
|
|
5.1
|
|
4.2
|
|
11.4
|
|
11.4
|
|
Income from continuing
operations
|
|
9.4
|
|
8.4
|
|
21.5
|
|
22.2
|
|
Loss from discontinued
operations, net of taxes
|
|
-
|
|
(0.1)
|
|
-
|
|
(0.1)
|
|
Net income
|
$
|
9.4
|
$
|
8.3
|
$
|
21.5
|
$
|
22.1
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share:
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
$
|
0.33
|
$
|
0.30
|
$
|
0.76
|
$
|
0.80
|
|
Income from discontinued operations
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Basic earnings per share
|
$
|
0.33
|
$
|
0.30
|
$
|
0.76
|
$
|
0.80
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share:
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
$
|
0.32
|
$
|
0.29
|
$
|
0.74
|
$
|
0.78
|
|
Income from discontinued operations
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Diluted earnings per share
|
$
|
0.32
|
$
|
0.29
|
$
|
0.74
|
$
|
0.78
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
28.3
|
|
27.7
|
|
28.2
|
|
27.6
|
|
Diluted
|
|
29.2
|
|
28.7
|
|
29.1
|
|
28.5
|
|
|
|
|
|
|
|
|
|
|
JBT
CORPORATION
|
|
BUSINESS
SEGMENT DATA
|
|
(Unaudited
and in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JBT FoodTech
|
$
|
124.8
|
$
|
114.0
|
$
|
361.9
|
$
|
354.4
|
|
JBT AeroTech
|
|
86.9
|
|
78.6
|
|
226.3
|
|
235.9
|
|
Other revenue (1) and
intercompany eliminations
|
|
4.8
|
|
3.8
|
|
5.6
|
|
5.3
|
|
Total revenue
|
$
|
216.5
|
$
|
196.4
|
$
|
593.8
|
$
|
595.6
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating
profit
|
|
|
|
|
|
|
|
|
|
JBT FoodTech
|
$
|
11.9
|
$
|
10.4
|
$
|
34.8
|
$
|
34.7
|
|
JBT AeroTech
|
|
6.1
|
|
5.5
|
|
14.8
|
|
17.0
|
|
Total segment operating
profit
|
|
18.0
|
|
15.9
|
|
49.6
|
|
51.7
|
|
|
|
|
|
|
|
|
|
|
|
Corporate items
|
|
|
|
|
|
|
|
|
|
Corporate expense
|
|
(4.3)
|
|
(4.0)
|
|
(12.0)
|
|
(11.0)
|
|
Other income (expense), net
(2)
|
|
2.8
|
|
2.8
|
|
1.2
|
|
(0.5)
|
|
Net interest expense
|
|
(2.0)
|
|
(2.1)
|
|
(5.9)
|
|
(6.6)
|
|
Total corporate items
|
|
(3.5)
|
|
(3.3)
|
|
(16.7)
|
|
(18.1)
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations before income taxes
|
$
|
14.5
|
$
|
12.6
|
$
|
32.9
|
$
|
33.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other revenue comprises
certain gains and losses on derivatives related to foreign exchange
exposure.
|
|
(2) Other income (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
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Inbound Orders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JBT FoodTech
|
$
|
127.1
|
$
|
125.2
|
$
|
382.1
|
$
|
335.6
|
|
JBT AeroTech
|
|
107.6
|
|
73.0
|
|
337.0
|
|
230.8
|
|
Other and intercompany
eliminations
|
|
4.8
|
|
3.9
|
|
5.8
|
|
5.9
|
|
|
|
|
|
|
|
|
|
|
|
Total inbound orders
|
$
|
239.5
|
$
|
202.1
|
$
|
724.9
|
$
|
572.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
|
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
Order Backlog
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JBT FoodTech
|
$
|
116.9
|
$
|
130.2
|
|
|
|
|
|
JBT AeroTech
|
|
225.4
|
|
132.4
|
|
|
|
|
|
Other and intercompany
eliminations
|
|
-
|
|
(0.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total order backlog
|
$
|
342.3
|
$
|
262.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JBT
CORPORATION
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
2010
|
|
2009
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
12.5
|
$
|
14.4
|
|
Trade receivables,
net
|
|
166.7
|
|
149.3
|
|
Inventories
|
|
131.6
|
|
107.0
|
|
Other current assets
|
|
43.3
|
|
32.7
|
|
Total current
assets
|
|
354.1
|
|
303.4
|
|
|
|
|
|
|
|
Property, plant and equipment,
net
|
|
121.9
|
|
126.5
|
|
Other assets
|
|
94.6
|
|
103.2
|
|
Total assets
|
$
|
570.6
|
$
|
533.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable, trade and
other
|
$
|
78.8
|
$
|
65.9
|
|
Advance payments and progress
billings
|
|
78.7
|
|
69.5
|
|
Other current
liabilities
|
|
92.4
|
|
98.2
|
|
Total current
liabilities
|
|
249.9
|
|
233.6
|
|
|
|
|
|
|
|
Long-term debt, less current
portion
|
|
143.7
|
|
131.8
|
|
Accrued pension and other
postretirement benefits,
|
|
|
|
|
|
less current
portion
|
|
63.2
|
|
77.1
|
|
Other liabilities
|
|
31.0
|
|
28.8
|
|
Common stock, paid-in capital
and retained earnings
|
|
116.6
|
|
97.8
|
|
Accumulated other comprehensive
loss
|
|
(33.8)
|
|
(36.0)
|
|
Total
stockholders' equity
|
|
82.8
|
|
61.8
|
|
Total liabilities and
stockholders' equity
|
$
|
570.6
|
$
|
533.1
|
|
|
|
|
|
|
JBT
CORPORATION
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited
and in millions)
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
Cash Flows From Operating
Activities:
|
|
|
|
|
|
Income from
continuing operations
|
$
|
21.5
|
$
|
22.2
|
|
|
|
|
|
|
|
Adjustments to reconcile income
to cash provided by operating activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
17.1
|
|
16.5
|
|
Other
|
|
1.5
|
|
12.9
|
|
|
|
|
|
|
|
Changes in operating assets and
liabilities:
|
|
|
|
|
|
Trade accounts
receivable, net
|
|
(12.2)
|
|
40.1
|
|
Inventories
|
|
(23.5)
|
|
(12.0)
|
|
Accounts payable,
trade and other
|
|
12.9
|
|
(4.9)
|
|
Advance payments
and progress billings
|
|
5.1
|
|
(10.2)
|
|
Accrued pension
and other postretirement benefits, net
|
|
(13.1)
|
|
(17.3)
|
|
Other - assets and
liabilities
|
|
(6.9)
|
|
(14.1)
|
|
|
|
|
|
|
|
Cash provided by continuing
operating activities
|
|
2.4
|
|
33.2
|
|
|
|
|
|
|
|
Cash required by discontinued
operating activities
|
|
(0.1)
|
|
-
|
|
|
|
|
|
|
|
Cash Flows From Investing
Activities:
|
|
|
|
|
|
Acquisitions
|
|
(0.4)
|
|
(6.7)
|
|
Capital
expenditures
|
|
(13.4)
|
|
(14.5)
|
|
Proceeds on
disposal of assets and other
|
|
0.9
|
|
1.2
|
|
|
|
|
|
|
|
Cash required by continuing
investing activities
|
|
(12.9)
|
|
(20.0)
|
|
|
|
|
|
|
|
Cash Flows From Financing
Activities:
|
|
|
|
|
|
Proceeds
(payments) on term debt
|
|
3.0
|
|
(0.1)
|
|
Net proceeds
(payments) on credit facilities
|
|
9.7
|
|
(40.0)
|
|
Dividends
paid
|
|
(6.2)
|
|
(5.8)
|
|
Other
|
|
1.9
|
|
0.2
|
|
|
|
|
|
|
|
Cash provided (required) by
financing activities
|
|
8.4
|
|
(45.7)
|
|
|
|
|
|
|
|
Effect of foreign exchange rate
changes on cash and cash equivalents
|
|
0.3
|
|
1.6
|
|
|
|
|
|
|
|
Decrease in cash and cash
equivalents
|
|
(1.9)
|
|
(30.9)
|
|
|
|
|
|
|
|
Cash and cash equivalents,
beginning of period
|
|
14.4
|
|
43.6
|
|
|
|
|
|
|
|
Cash and cash equivalents, end
of period
|
$
|
12.5
|
$
|
12.7
|
|
|
|
|
|
|
JBT
CORPORATION
|
|
RECONCILIATION OF NON-GAAP
MEASURES
|
|
(Unaudited
and in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
EBIT (Non-GAAP
measure)
|
$
|
16.5
|
$
|
14.7
|
$
|
38.8
|
$
|
40.2
|
|
|
|
|
|
|
|
|
|
|
|
Net interest expense
|
|
(2.0)
|
|
(2.1)
|
|
(5.9)
|
|
(6.6)
|
|
Provision for income
taxes
|
|
(5.1)
|
|
(4.2)
|
|
(11.4)
|
|
(11.4)
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
9.4
|
|
8.4
|
|
21.5
|
|
22.2
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued
operations, net of taxes
|
|
-
|
|
(0.1)
|
|
-
|
|
(0.1)
|
|
Net income
|
$
|
9.4
|
$
|
8.3
|
$
|
21.5
|
$
|
22.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
216.5
|
$
|
196.4
|
$
|
593.8
|
$
|
595.6
|
|
|
|
|
|
|
|
|
|
|
|
EBIT (Non-GAAP
measure)
|
$
|
16.5
|
$
|
14.7
|
$
|
38.8
|
$
|
40.2
|
|
EBIT as percent of Revenue
(Non-GAAP measure)
|
|
7.6%
|
|
7.5%
|
|
6.5%
|
|
6.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
$
|
9.4
|
$
|
8.3
|
$
|
21.5
|
$
|
22.1
|
|
Net Income as percent of
Revenue
|
|
4.3%
|
|
4.2%
|
|
3.6%
|
|
3.7%
|
|
|
|
|
|
|
|
|
|
|
SOURCE JBT Corporation