AZZ incorporated Reports Results for the First Quarter of Fiscal Year 2010

FORT WORTH, Texas, June 26 /PRNewswire-FirstCall/ -- AZZ incorporated (NYSE:
AZZ), a manufacturer of electrical products and a provider of galvanizing
services, today announced unaudited financial results for the first quarter
ended May 31, 2009. Revenues for the first quarter were $95.5 million compared
to $99.9 million for the same quarter last year, a decrease of 5 percent. Net
income for the quarter was $9.9 million, or $0.80 per diluted share, compared
to net income of $10.1 million, or $0.82 per diluted share, in last year's
first fiscal quarter.

Backlog at the end of the first quarter was $150.1 million. Backlog at the end
of the first quarter of FY 2009 was $141.8 million and $174.8 million at
February 28, 2009. Incoming orders for the first quarter were $70.7 million
while shipments for the quarter totaled $95.5 million, resulting in a book to
ship ratio of 74 percent. There were no significant international orders
received in the first quarter of FY 2010. Based upon current customer
requested delivery dates and our production schedules, 91 percent of the
backlog at May 31, 2009 is expected to ship in the current fiscal year. Of
the backlog of $150.1 million, 39 percent is to be delivered outside of the
U.S.

Revenues for the Electrical and Industrial Products Segment for the first
quarter of FY 2010 were $55.4 million as compared to $52.0 million for the
same quarter last year, an increase of 7 percent. Operating income for the
segment increased 33 percent to $10.5 million compared to $7.9 million in the
same period last year. Operating margins for the first quarter were 19
percent.

Revenues for the Company's Galvanizing Service Segment for the first quarter
were $40.1 million, compared to the $48.0 million in the same period last
year, a decrease of 16 percent. Operating income was $12.8 million as
compared to $13.4 million in the prior period. Tonnage shipped decreased 12
percent when compared to the prior period. Operating margins for the first
quarter were 32 percent.

David H. Dingus, president and chief executive officer of AZZ incorporated,
commented, "Regarding our Electrical and Industrial Products Segment, again
this quarter, we are extremely pleased with the operating performance. As we
indicated last quarter, we continue to monitor closely our market
opportunities and our operating structure due to the changing and challenging
market conditions. Incoming orders slowed in the fourth quarter of our fiscal
2009 and we have seen a continuation of that trend in the first quarter of our
new fiscal year. While our quotation levels have increased during the quarter
when compared to the fourth quarter of last fiscal year, we have not seen a
corresponding increase in our incoming order rate. Incoming orders continue
to be slower than desired due to increased customer deliberation on the
release of new orders pertaining to projects and increased competitive
pressure, particularly on large international orders, combined with the
typical delay we see between quotations and orders. We still anticipate that
our backlog will level off at the end of the second quarter followed by modest
increases in the last half of the fiscal year. Despite the improvement in our
quotation levels, we anticipate a further deterioration of our backlog in the
second quarter of 10 to 15 percent. Competitive conditions in some of our
international markets could improve allowing us to secure additional business
which could offset this projected deterioration. If market conditions
improve, as well as an expansion of infrastructure projects, we are well
positioned to capitalize on these improvements. We will continue our efforts
to expand our served markets and product offerings, and believe that the
strength of our historical operating performance, combined with the excellent
positioning of our products, provide an excellent platform from which to grow
once we do see market recovery and continue the trend of increasing quotation
levels.

The Galvanizing Services Segment achieved outstanding operating performance
considering the market conditions in which we are operating. We continue to
demonstrate our commitment to quality and service during these market
conditions and take advantage of all opportunities to maintain market pricing.
The lower zinc cost in our first quarter combined with increased operating
efficiencies, facilitated excellent margins. Our infrastructure work remained
at levels consistent with the fourth quarter of the last fiscal year. We
remain committed to our market approach and believe that we will continue to
report strong operating results, despite the challenges we face. Margins for
the balance of the fiscal year are expected to be below that achieved in the
first quarter, but should remain above the historical levels that we have
talked to you about before of 18 to 22 percent."

Mr. Dingus concluded, "Management of pricing, expansion of domestic and
international markets, and seeking out new product opportunities to further
enhance our strategic position continue to be the focus and emphasis of our
activities. Based upon the evaluation of information currently available to
management, we are revising our guidance for revenues to be in the range of
$370 million to $390 million. Our earning guidance is revised and anticipated
to be within the range of $2.70 to $2.90. Achievement of these projections
would be our 23rd consecutive year of profitability and the second best year
in the history of the company. Our estimates assume that we will not have any
appreciable change in our current market conditions, competitive activity or
significant delays in the delivery or timing in the receipt of orders of our
electrical and industrial products, and demand for our galvanizing services."

AZZ incorporated will conduct a conference call to discuss financial results
for the first quarter of fiscal year 2010 at 11:00 A.M. ET on Friday, June 26,
2009. Interested parties can access the conference call by dialing (800)
860-2442 or (412) 858-4600 (international). The call will be web cast via the
Internet at www.azz.com/AZZinvest.htm. A replay of the call will be available
for three days at (877) 344-7529 or (412) 317-0088 (international),
confirmation #431648, or for 30 days at www.azz.com/AZZinvest.htm.

AZZ incorporated is a specialty electrical equipment manufacturer serving the
global markets of power generation, transmission and distribution and
industrial, as well as a leading provider of hot dip galvanizing services to
the steel fabrication market nationwide.

Except for the statements of historical fact, this release may contain
forward-looking statements that involve risks and uncertainties some of which
are detailed from time to time in documents filed by the Company with the SEC.
Those risks and uncertainties include, but are not limited to: changes in
customer demand and response to products and services offered by the company,
including demand by the electrical power generation markets, electrical
transmission and distribution markets, the industrial markets, and the hot dip
galvanizing markets; prices and raw material costs, including zinc and natural
gas which are used in the hot dip galvanizing process; changes in the economic
conditions of the various markets the Company serves, foreign and domestic,
customer requested delays of shipments, acquisition opportunities, currency
exchange rates, adequacy of financing, and availability of experienced
management employees to implement the Company's growth strategy. The Company
can give no assurance that such forward-looking statements will prove to be
correct. We undertake no obligation to affirm, publicly update or revise any
forward-looking statements, whether as a result of information, future events
or otherwise.

---Financial tables follow---

AZZ incorporated
Condensed Consolidated Statement of Income
(in thousands except per share amounts)

Three Months Ended
May 31, 2009 May 31, 2008
(unaudited) (unaudited)
=========== ===========

Net sales $95,492 $99,958
Costs and Expenses:
Cost of Sales 65,804 73,689
Selling, General and Administrative 12,124 9,856
Interest Expense 1,686 1,121
Net (Gain) Loss on Sales or Insurance
Settlement of Property,
Plant and Equipment (5) 3
Other (Income) (81) (484)
Other Expense - -
$79,528 $84,185

Income before income taxes and
accounting change $15,964 $15,773
Income Tax Expense 6,064 5,650
Income Before Cumulative Effect of
Changes in Accounting Principles 9,900 10,123
Cumulative Effect of Changes in
Accounting Principles (Net of Tax) - -
Net income $9,900 $10,123
Net income per share
Basic $0.81 $0.83
Diluted $0.80 $0.82
Diluted average shares outstanding 12,410 12,290

Segment Reporting
(in thousands)

Three Months Ended May 31,
2009 2008
(unaudited) (unaudited)

Net Sales:
Electrical and Industrial Products $55,386 $52,006
Galvanizing Services 40,106 47,952
$95,492 $99,958

Segment Operating Income (a):
Electrical and Industrial Products $10,512 $7,931
Galvanizing Services 12,793 13,358
Total Segment Operating Income $23,305 $21,299

Condensed Consolidated Balance Sheet
(in thousands)

May 31, February 28,
2009 2009
(unaudited) (audited)
=========== ===========

Assets:
Current assets $185,938 $182,023
Net property, plant and equipment $87,962 $87,667
Other assets, net $86,165 $85,025
------- -------
Total assets $360,065 $354,715
======== ========

Liabilities and shareholders' equity:
Current liabilities $49,237 $58,371
Long term debt due after one year $100,000 $100,000
Other liabilities $10,140 $9,232
Shareholders' equity $200,688 $187,112
-------- --------
Total liabilities and shareholders' equity $360,065 $354,715
======== ========

Condensed Consolidated Statement of Cash Flows
(in thousands)

Three Months Ended
May 31, 2009 May 31, 2008
(unaudited) (unaudited)
=========== ===========

Net cash provided by (used in) operating
activities $13,740 ($1,884)
Net cash provided by (used in) investing
activities ($3,700) ($86,220)
Net cash provided by (used in) financing
activities $65 $100,094
Net cash provided by (used in) effect of
exchange rate $26
Net increase (decrease) in cash and cash
equivalents $10,131 $11,990
Cash and cash equivalents at beginning of
period $47,558 $2,227
--------- ---------
Cash and cash equivalents at end of period $57,689 $14,217
======= =======

Contact: Dana Perry, Senior Vice President - Finance and CFO
AZZ incorporated 817-810-0095
Internet: www.azz.com

Lytham Partners 602-889-9700
Joe Dorame, Joe Diaz or Robert Blum
Internet: www.lythampartners.com

SOURCE AZZ incorporated

Dana Perry, Senior Vice President - Finance and CFO of AZZ incorporated,
+1-817-810-0095; or Joe Dorame, Joe Diaz, or Robert Blum, +1-602-889-9700, all
of Lytham Partners, for AZZ incorporated