CHICAGO, Nov. 5, 2012 /PRNewswire/ --
Highlights (Continuing Operations):
- Inbound orders and backlog increased substantially both
year-over-year and sequentially
- Segment operating profit margin of 8.5 percent expanded
120 basis points over last year
- Strong cash flow generated from operating activities
resulted in record low level of debt, net of cash, of $92 million at quarter-end
- Diluted earnings per share from continuing operations of
$0.21, as revenue declined due to a
shift in delivery schedules of several orders
- Full-year diluted earnings per share guidance updated to
$1.22 to $1.28
JBT Corporation (NYSE: JBT), a leading global technology
solutions provider to the food processing and air transportation
industries, today reported third quarter 2012 results.
Revenue for the third quarter was $205.3
million, a decline of 9 percent in constant currency from
the prior-year quarter. This decline was primarily due to
shifts in delivery schedules of several orders. Higher gross
profit margins drove an increase in segment operating profit to
$17.4 million. As a result,
segment operating profit margin rose to 8.5 percent, an expansion
of 120 basis points over last year. Despite the improved
performance at the segment level, consolidated operating income for
the third quarter was $10.3 million,
down 28 percent from last year's third quarter. This decrease
was largely attributable to $3.6
million in mark-to-market gains on foreign currency
transactions recognized in the third quarter of last year, compared
to a $0.1 million loss in the same
period this year. Third quarter diluted earnings per share
from continuing operations was $0.21,
compared to $0.28 in the third
quarter of 2011. Year-to-date cash generated from operating
activities was $68.6 million,
resulting in a record low level of debt, net of cash, of
$92.4 million at quarter-end.
"We are pleased with the margin expansion, strong cash flow and
healthy order activity in the third quarter, as well as our backlog
position at quarter-end. As discussed on our October 23rd preliminary results
conference call, a shift in delivery schedules resulted in earnings
that fell short of our expectations," said Charlie Cannon, Chairman and Chief Executive
Officer. "We are projecting a record fourth quarter
performance given our current backlog position and our expectations
for continued savings from our cost reduction initiatives.
However, as a result of lower than previously forecasted sales
volume and further shifts in delivery schedules to 2013 of certain
large orders, as also previously announced on our October 23rd call, we have updated our
full-year earnings guidance range to $1.22
to $1.28," concluded Cannon.
JBT FoodTech
JBT FoodTech's third quarter revenue of $117.1 million decreased 6 percent in constant
currency from the same period in 2011. An increase in
freezing and chilling and protein processing equipment sales in
Europe was more than offset by
lower revenue from the same products in North America and Asia Pacific. The lower revenue largely
reflects shifts in delivery schedules of orders totaling
approximately $11 million across
several regions and product lines. Despite the lower revenue,
segment operating profit of $9.0
million increased 15 percent in constant currency from the
prior-year quarter. Segment operating profit margin increased
by 135 basis points to 7.7 percent, mainly as a result of savings
from cost reduction initiatives announced in January 2012.
Segment inbound orders of $135.7
million increased 8 percent year-over-year, primarily driven
by strong order activity in freezing and chilling and protein
processing equipment across Europe, North
America and Asia Pacific,
partially offset by lower order volume for in-container
equipment. Backlog of $173.1
million increased 36 percent from the third quarter of 2011
and 12 percent sequentially.
JBT AeroTech
JBT AeroTech's third quarter revenue of $88.0 million decreased 11 percent from the same
period in 2011. Fewer automated systems projects and lower
revenue from gate equipment projects largely drove the revenue
decline. The lower revenue largely reflects shifts in project
and delivery schedules for gate equipment and ground support
equipment totaling approximately $15
million. Despite the lower revenue, segment operating
profit margin expanded 70 basis points to 9.5 percent. The
margin expansion was driven mainly by higher gross margins in gate
equipment resulting from a stronger mix of higher margin ancillary
equipment and higher margins on parts. Third quarter inbound
orders of $122.8 million increased 47
percent from the prior year, predominantly due to a pick-up in gate
equipment orders in line with our expectations. Backlog of
$170.8 million was lower than the
prior-year period by $12.2
million.
Corporate Items
Corporate items, excluding net interest expense were
$7.1 million in the third quarter, an
increase of $4.5 million from the
same period in 2011. The increase was primarily a result of
$3.7 million in unfavorable
mark-to-market adjustments on foreign currency positions.
Cash generated by operating activities in the quarter was
$20.4 million. The Company
ended the quarter with a record low level of debt, net of cash, of
$92.4 million, a decline of
$12.5 million from $104.9 million at June
30, 2012. Net interest expense of $1.8 million was higher relative to the third
quarter of 2011 due to both a higher level of total average debt
outstanding during the period and a higher average interest
rate.
Income tax expense in the third quarter of 2012 reflected an
effective income tax rate for the full year of 35 percent.
However, actual tax expense was lower due to a $0.7 million tax benefit recorded in the quarter,
primarily as a result of finalizing the 2011 tax return.
Capital expenditures for the quarter totaled $6.2 million, and depreciation and amortization
totaled $6.1 million.
2012 Guidance
The Company projects a record fourth quarter performance,
supported by a strong quarter-end backlog and continued savings
from cost reduction actions taken earlier in the year.
However, a modest top-line contraction is expected for the
full-year 2012, primarily resulting from lower than previously
forecasted sales volume and shifts in delivery schedules to 2013 of
certain large orders. As a result, the Company has updated
its guidance range to $1.22 - $1.28
for 2012 diluted earnings per share from continuing
operations.
Third Quarter Earnings Conference Call
A conference call is scheduled for 10:00
a.m. EST on Tuesday, November 6,
2012 to discuss the third quarter results.
Participants may access the conference call by dialing (877)
235-3250 or (706) 643-5005 and using conference ID 39787969, or
through the Investor Relations link on JBT Corporation's website at
http://ir.jbtcorporation.com. An online audio replay of the
call will be available on the Company's Investor Relations website
at approximately 1:30 PM EST on
November 6, 2012.
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 3,200 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 2011 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.
JBT
CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
|
(Unaudited and in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
Nine
Months Ended
|
|
|
September 30,
|
|
|
September 30,
|
|
|
2012
|
|
2011
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
205.3
|
$
|
230.3
|
|
$
|
624.4
|
$
|
684.3
|
Cost of
sales
|
|
153.3
|
|
173.1
|
|
|
468.0
|
|
516.1
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
52.0
|
|
57.2
|
|
|
156.4
|
|
168.2
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expense
|
|
37.9
|
|
37.8
|
|
|
114.6
|
|
113.3
|
Research
and development expense
|
|
3.3
|
|
4.5
|
|
|
10.5
|
|
14.3
|
Other
expense (income), net
|
|
0.5
|
|
0.6
|
|
|
(0.8)
|
|
(0.4)
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
10.3
|
|
14.3
|
|
|
32.1
|
|
41.0
|
|
|
|
|
|
|
|
|
|
|
Net
interest expense
|
|
(1.8)
|
|
(1.5)
|
|
|
(5.2)
|
|
(4.9)
|
Income
from continuing operations before income taxes
|
|
8.5
|
|
12.8
|
|
|
26.9
|
|
36.1
|
Provision
for income taxes
|
|
2.3
|
|
4.7
|
|
|
8.8
|
|
12.7
|
Income
from continuing operations
|
|
6.2
|
|
8.1
|
|
|
18.1
|
|
23.4
|
Loss from
discontinued operations, net of taxes
|
|
(0.1)
|
|
-
|
|
|
(0.4)
|
|
(0.1)
|
Net income
|
$
|
6.1
|
$
|
8.1
|
|
$
|
17.7
|
$
|
23.3
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share:
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
$
|
0.21
|
$
|
0.28
|
|
$
|
0.62
|
$
|
0.81
|
Loss from discontinued operations
|
|
-
|
|
-
|
|
|
(0.01)
|
|
-
|
Net income
|
$
|
0.21
|
$
|
0.28
|
|
$
|
0.61
|
$
|
0.81
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share:
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
$
|
0.21
|
$
|
0.28
|
|
$
|
0.61
|
$
|
0.80
|
Loss from discontinued operations
|
|
(0.01)
|
|
(0.01)
|
|
|
(0.01)
|
|
(0.01)
|
Net income
|
$
|
0.20
|
$
|
0.27
|
|
$
|
0.60
|
$
|
0.79
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
29.2
|
|
28.8
|
|
|
29.1
|
|
28.8
|
Diluted
|
|
29.6
|
|
29.4
|
|
|
29.5
|
|
29.3
|
|
|
|
|
|
|
|
|
|
|
JBT
CORPORATION
|
BUSINESS SEGMENT DATA
|
(Unaudited and in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
Nine
Months Ended
|
|
|
September 30,
|
|
|
September 30,
|
|
|
2012
|
|
2011
|
|
|
2012
|
|
2011
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JBT
FoodTech
|
$
|
117.1
|
$
|
129.5
|
|
$
|
370.9
|
$
|
390.7
|
JBT
AeroTech
|
|
88.0
|
|
98.5
|
|
|
251.5
|
|
288.2
|
Other
revenue (1) and intercompany eliminations
|
|
0.2
|
|
2.3
|
|
|
2.0
|
|
5.4
|
Total
revenue
|
$
|
205.3
|
$
|
230.3
|
|
$
|
624.4
|
$
|
684.3
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
operating profit
|
|
|
|
|
|
|
|
|
|
JBT
FoodTech
|
$
|
9.0
|
$
|
8.2
|
|
$
|
29.8
|
$
|
27.9
|
JBT
AeroTech
|
|
8.4
|
|
8.7
|
|
|
21.2
|
|
24.0
|
Total
segment operating profit
|
|
17.4
|
|
16.9
|
|
|
51.0
|
|
51.9
|
|
|
|
|
|
|
|
|
|
|
Corporate
items
|
|
|
|
|
|
|
|
|
|
Corporate
expense
|
|
(4.0)
|
|
(4.4)
|
|
|
(12.3)
|
|
(12.2)
|
Other
(expense) income, net (2)
|
|
(3.1)
|
|
1.8
|
|
|
(6.6)
|
|
1.3
|
Net
interest expense
|
|
(1.8)
|
|
(1.5)
|
|
|
(5.2)
|
|
(4.9)
|
Total
corporate items
|
|
(8.9)
|
|
(4.1)
|
|
|
(24.1)
|
|
(15.8)
|
|
|
|
|
|
|
|
|
|
|
Income
from continuing operations before income taxes
|
$
|
8.5
|
$
|
12.8
|
|
$
|
26.9
|
$
|
36.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other
revenue comprises certain gains and losses on derivatives related
to foreign exchange exposure.
|
|
(2) Other
expense, net, generally includes stock-based compensation, other
employee benefits, LIFO adjustments, restructuring costs, foreign
exchange gains and losses, and the impact of unusual or strategic
transactions not representative of segment operations. Other
expense, net includes a release of $0.3 million of restructuring
reserves in nine months ended September 30, 2012 related to JBT
AeroTech and $0.1 million and $1.3 million of restructuring costs
in the three months and nine months ended September 30, 2011,
respectively, related to JBT FoodTech.
|
|
|
|
|
|
|
|
|
|
|
JBT
CORPORATION
|
BUSINESS SEGMENT DATA
|
(Unaudited and in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
Nine
Months Ended
|
|
|
September 30,
|
|
|
September 30,
|
|
|
2012
|
|
2011
|
|
|
2012
|
|
2011
|
Inbound
Orders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JBT
FoodTech
|
$
|
135.7
|
$
|
126.1
|
|
$
|
445.5
|
$
|
414.9
|
JBT
AeroTech
|
|
122.8
|
|
83.4
|
|
|
292.3
|
|
287.8
|
Other and
intercompany eliminations
|
|
0.2
|
|
2.3
|
|
|
2.0
|
|
5.4
|
|
|
|
|
|
|
|
|
|
|
Total
inbound orders
|
$
|
258.7
|
$
|
211.8
|
|
$
|
739.8
|
$
|
708.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
Order
Backlog
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JBT
FoodTech
|
$
|
173.1
|
$
|
127.6
|
|
|
|
|
|
JBT
AeroTech
|
|
170.8
|
|
183.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
order backlog
|
$
|
343.9
|
$
|
310.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JBT
CORPORATION
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
2012
|
|
2011
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Cash and
cash equivalents
|
$
|
84.4
|
$
|
9.0
|
Trade
receivables, net
|
|
148.1
|
|
189.4
|
Inventories
|
|
142.8
|
|
122.3
|
Other
current assets
|
|
47.9
|
|
38.4
|
Total current
assets
|
|
423.2
|
|
359.1
|
|
|
|
|
|
Property,
plant and equipment, net
|
|
124.3
|
|
124.7
|
Other
assets
|
|
113.0
|
|
108.4
|
Total
assets
|
$
|
660.5
|
$
|
592.2
|
|
|
|
|
|
|
|
|
|
|
Short term
debt and current portion of long-term debt
|
$
|
101.1
|
$
|
4.4
|
Accounts
payable, trade and other
|
|
78.0
|
|
82.5
|
Advance
payments and progress billings
|
|
91.3
|
|
57.4
|
Other
current liabilities
|
|
92.1
|
|
95.4
|
Total current
liabilities
|
|
362.5
|
|
239.7
|
|
|
|
|
|
Long-term
debt, less current portion
|
|
75.7
|
|
135.7
|
Accrued
pension and other postretirement benefits,
|
|
|
|
|
less current
portion
|
|
96.1
|
|
109.2
|
Other
liabilities
|
|
29.7
|
|
27.8
|
Common
stock, paid-in capital and retained earnings
|
|
171.5
|
|
156.5
|
Accumulated other comprehensive loss
|
|
(75.0)
|
|
(76.7)
|
Total stockholders'
equity
|
|
96.5
|
|
79.8
|
Total
liabilities and stockholders' equity
|
$
|
660.5
|
$
|
592.2
|
|
|
|
|
|
JBT
CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
(Unaudited and in millions)
|
|
|
|
|
|
|
|
Nine
Months Ended
|
|
|
September 30,
|
|
|
2012
|
|
2011
|
|
|
|
|
|
Cash
Flows From Operating Activities:
|
|
|
|
|
Income from continuing
operations
|
$
|
18.1
|
$
|
23.4
|
|
|
|
|
|
Adjustments to reconcile income to cash provided
by operating activities:
|
|
|
|
|
Depreciation and
amortization
|
|
17.9
|
|
18.3
|
Other
|
|
8.7
|
|
6.1
|
|
|
|
|
|
Changes
in operating assets and liabilities:
|
|
|
|
|
Trade accounts receivable,
net
|
|
42.5
|
|
31.9
|
Inventories
|
|
(18.9)
|
|
(37.0)
|
Accounts payable, trade and
other
|
|
(4.5)
|
|
0.5
|
Advance payments and
progress billings
|
|
33.0
|
|
16.4
|
Other - assets and
liabilities
|
|
(28.2)
|
|
(15.4)
|
|
|
|
|
|
Cash
provided by continuing operating activities
|
|
68.6
|
|
44.2
|
|
|
|
|
|
Cash
required by discontinued operating activities
|
|
(0.5)
|
|
(0.4)
|
|
|
|
|
|
Cash
Flows From Investing Activities:
|
|
|
|
|
Acquisitions
|
|
(5.0)
|
|
-
|
Capital
expenditures
|
|
(17.3)
|
|
(15.2)
|
Other
|
|
0.9
|
|
(0.8)
|
|
|
|
|
|
Cash
required by investing activities
|
|
(21.4)
|
|
(16.0)
|
|
|
|
|
|
Cash
Flows From Financing Activities:
|
|
|
|
|
Net proceeds (payments) on
credit facilities
|
|
36.6
|
|
(10.7)
|
Dividends paid
|
|
(6.4)
|
|
(6.4)
|
Other
|
|
(1.6)
|
|
(3.1)
|
|
|
|
|
|
Cash
provided (required) by financing activities
|
|
28.6
|
|
(20.2)
|
|
|
|
|
|
Effect of
foreign exchange rate changes on cash and cash
equivalents
|
|
0.1
|
|
(1.2)
|
|
|
|
|
|
Increase
in cash and cash equivalents
|
|
75.4
|
|
6.4
|
|
|
|
|
|
Cash and
cash equivalents, beginning of period
|
|
9.0
|
|
13.7
|
|
|
|
|
|
Cash and
cash equivalents, end of period
|
$
|
84.4
|
$
|
20.1
|
|
|
|
|
|
|
|
|
|
|
SOURCE JBT Corporation