Enerpac Tool sales rise 16 percent
Enerpac Tool Group reported net sales of $137 million for its fiscal 2022 second quarter, a 16 percent increase from $121 million in the same period last year.
Net income of $2.1 million, or 3 cents per share, declined from $3.6 million, or 6 cents, in last year's second quarter.
“We are pleased to have achieved year-over-year core growth in all regions and encouraged by the sequential growth over the first quarter, despite the ongoing supply chain and logistic challenges,” said Paul Sternlieb, president and CEO. “We continue to see improvements in demand across several of our end markets but remain cautious as we head into the back half of our fiscal year given the continuing supply chain challenges and the very dynamic macroeconomic environment.”
The manufacturer of industrial tools and services also announced the launch of ASCEND, a program focused on driving accelerated earnings growth and efficiency across the business.
As part of ASCEND, the company will focus on "accelerating organic growth go-to-market strategies including improved commercial effectiveness, vertical market-specific commercial and product strategies, channel optimization through its 80/20 approach, strategic pricing optimization, and selective innovation to meet broader and emerging market demands."
It will also seek to Improve operational excellence and production efficiency by utilizing a Lean approach. The company will also continue to simplify its business by further optimizing its footprint, accelerating global strategic sourcing and indirect spend optimization, and rationalizing SKUs in line with its 80/20 approach.
Driving greater efficiency and productivity in selling, general and administrative (SG&A) costs by better leveraging resources to create a more efficient and agile organization. Enerpac intends to optimize G&A through consolidation and additional shared services implementation. In addition, the company intends to strengthen its salesforce effectiveness by enhancing sales and channel coverage, while flattening its structure to move closer to customers. Moreover, the company will also look to further simplify and rationalize its legal entity structure.
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