Semiconductor industry pulls down Enpro's sales results
EnPro Industries, Inc. announced sales of $250.7 million for third quarter ended September 30, a 10.5% decline.
Highlights of the company's financial reporting on October 31:
- Sales of $250.7 million down 10.5%; organic sales down 10.8%
- GAAP income from continuing operations attributable to EnPro Industries, Inc. of $8.3 million compared to $26.2 million of income last year
- Continued excellent performance in Sealing Technologies more than offset by weakness in Advanced Surface Technologies
- Adjusted EBITDA* down 19.1% to $57.7 million; adjusted EBITDA margin* down 250 bps to 23.0%
- GAAP diluted earnings per share from continuing operations attributable to EnPro Industries, Inc. of $0.39, compared to diluted earnings per share of $1.26 last year
- Adjusted diluted earnings per share* from continuing operations attributable to EnPro Industries, Inc. down 16.4% to $1.58 versus $1.89 last year
- Strong cash flow from operations and free cash flow,* along with a well-capitalized balance sheet, provide ample flexibility for continued growth investments
(All results reflect comparisons to prior-year period, from continuing operations, unless otherwise noted)
(*Non-GAAP measure. See the attached schedules for adjustments and reconciliations of historical measures to GAAP measures)
“Continued strong performance in the Sealing Technologies segment in the third quarter was offset by declines experienced in the Advanced Surface Technologies segment due to weakness in the semiconductor industry," said President and Chief Executive Officer Eric Vaillancourt. "Despite these macro headwinds, Enpro delivered adjusted EBITDA margins of 23.0% for the third quarter and 23.6% year-to-date. Our ability to maintain healthy margins during a semiconductor downturn reflects the benefits of our balanced portfolio and resilient business model. We will continue to invest in our semiconductor business through the cycle and are well positioned to benefit from what is widely expected to be a doubling of the industry in the decade ahead.
“Our balance sheet is strong and we continue to generate excellent free cash flow," he continued. "We are investing in organic growth opportunities and productivity enhancements across the company, while prudently pursuing acquisitions that expand our leading-edge capabilities and meet our strategic and financial criteria.”
INDUSTRIAL SUPPLY MAGAZINE
The March/April issue of Industrial Supply magazine features an in-depth cover story about Joyce Lansdale and Vallen. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and David Kahle, as well as interviews with numerous product and distribution industry experts.
