March 24, 2010 / 1:21 PM / 7 years ago

UPDATE 2-Robbins & Myers Q2 profit drops, sees Q3 EPS below est

* Q2 EPS $0.13 vs $0.46 yr-ago

* Q2 revenue falls 21 pct

* Sees Q3 adj EPS at $0.13- $0.23, below market estimates

* Shares down as much as 8 pct (Adds analyst comments, updates share movement)

By Fareha Khan

BANGALORE, March 24 (Reuters) - Diversified manufacturer Robbins & Myers Inc RBN.N posted a 72 percent drop in quarterly profit, hurt by lower sales and difficult pricing conditions, and forecast third-quarter earnings below market estimates, sending its shares down as much as 8 percent.

The company, which serves the energy, pharmaceutical and industrial markets, expects third-quarter earnings of 13 cents to 23 cents a share, excluding items.

Analysts on average were expecting earnings of 29 cents a share, according to Thomson Reuters I/B/E/S.

"I was expecting stronger numbers (for third quarter) as a result of growth in the fluid management group because of the strength in the energy market," Global Hunter Securities LLC analyst Bo McKenzie said.

Fluid management group has got heavy exposure to the drilling business that has been picking up very sharply in the last couple of quarters, McKenzie said.

The analyst expects the company's growth this year to be driven by the fluid management group, which contributed about 52 percent to second-quarter sales.


For the second quarter ended Feb. 28, the company reported a net income of $4.2 million, or 13 cents a share, compared with $15.1 million, or 46 cents a share, a year ago.

Revenue fell 21 percent to $129.9 million.

Analysts were expecting the company to earn 14 cents a share, before special items, on revenue of $122.7 million.

The company also reaffirmed its full-year earnings forecast of 80 cents to $1 per share, excluding items.

Shares of the company were down 5 percent at $25.06 in morning trade, making them one of the top 10 percentage losers on the New York Stock Exchange. They touched a low of $24.46 earlier. (Reporting by Fareha Khan in Bangalore; Editing by Ratul Ray Chaudhuri)

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