AZZ Q3 profit declines
The latest quarter's results include net charges of $1.6 million, or $0.06 per share, primarily related to the loss on the divestiture of Southern Mechanical Services or SMS.
Excluding items, adjusted earnings for the quarter were $0.80 per share.
Net sales for the quarter declined 22.2 percent to $226.62 million from $291.14 million for the comparable period last year.
Incoming orders for the three-month period declined to $194.4 million from $263.7 million for the same quarter last year.
Backlog at the end of the quarter was $174.4 million, down 36.5 percent from the prior-year period, due to lower orders in China as the company previously stated its plan to decrease sales efforts in this region, along with the effects on the business from the pandemic.
The company noted that its acquisition of Acme Galvanizing is part of its strategy to continue to grow the Metal Coatings business. In addition, the company is conducting a comprehensive Board-led review of its businesses with the assistance of independent financial, legal and tax advisors.
"Our review of the Infrastructure Solutions businesses and associated assets, and the exploration of additional capital allocation opportunities to maximize shareholder value, is ongoing and I am pleased with the progress the team has made during the quarter," said Tom Ferguson, President and Chief Executive Officer of AZZ. ■