* Q2 EPS $0.10 vs $0.06 yr-ago
* Sees Q3 adj EPS of $0.24-$0.29, rev $310 mln-$320 mln
* Sees improving sales trends in back half of 2010
* Says actively pursuing several acquisition opportunities
* Shares up 7 pct, touch new year-high
(Recasts; adds conference call and analysts' comments,
updates share movement)
By Fareha Khan
BANGALORE, March 17 Actuant Corp's (ATU.N)
quarterly profit more than doubled, helped by cost reduction
measures, and the diversified manufacturer said it expects
sales trends in all of its segments to improve in the second
half of the financial year.
Shares of the company rose as much as 7 percent to a new
year-high of $20.89.
Actuant -- which operates in the industrial, energy,
electrical and engineered solutions markets -- said it is
actively pursuing several "modest" acquisition opportunities
that, when completed, would add to its earnings.
"Cash flow remains a positive, and Actuant's solid
financial position enhances the possibilities for accretive
acquisitions," BMO Capital Markets analyst Charles Brady wrote
in a note to clients.
The company's focus on acquisitions will continue to be on
the industrial and energy segments, analyst Robert Graham of
Ladenburg Thalmann & Co told Reuters.
Actuant said its year-over-year earnings improvement in the
second quarter came from electrical and engineered solution
segments, and not from its higher margin energy and industrial
Due to softness in the energy segment, Actuant launched
restructuring actions during the quarter to reduce permanent
cost, the company said on a conference call with analysts.
The company said it experienced sequentially higher sales
in a number of its key end markets in the seasonally weak
"We are optimistic that global industrial activity and the
corresponding demand for our products and services will
continue to improve through the remainder of the year," Chief
Executive Robert Arzbaecher said in a statement.
Actuant would see its margins benefit as sales begin to
recover, BMO Capital's Brady said.
For the third quarter, excluding items, the company expects
earnings of 24 cents to 29 cents a share, on revenue of $310
million to $320 million.
Analysts on average were expecting earnings of 26 cents a
share, on revenue of $309.1 million, according to Thomson
Q2 PROFIT JUMPS
For the second quarter ended Feb. 28, the company reported
net income of $7.2 million, or 10 cents a share, compared with
$3.2 million, or 6 cents a share, a year ago.
Excluding restructuring charges, it earned 19 cents a
The Butler, Wisconsin-based company, whose products range
from plugs and sockets to precision control systems for
automobiles, saw revenue rise slightly to $294.2 million.
Sales at the engineered solutions segment rose 23 percent
to $89.4 million.
Analysts were expecting earnings of 16 cents a share,
before items, on revenue of $286.5 million.
Shares of the company were trading up 5 percent at $20.50
Wednesday afternoon on the New York Stock Exchange.
(Reporting by Fareha Khan in Bangalore; Editing by Anne
Pallivathuckal and Maju Samuel)