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Mar 31, 2020
Foster Q1 2020 Earnings Report
Reported a net loss and a decrease in net sales due to the COVID-19 pandemic.
Key Takeaways
L.B. Foster reported a net loss of $1.9 million, or $0.18 loss per diluted share, and a decrease in net sales of 14.4% to $128.8 million for the first quarter of 2020. The decline in revenue was primarily driven by the COVID-19 pandemic and its impact on demand for crude oil.
Net loss for the first quarter of 2020 was $1.9 million, or $0.18 loss per diluted share.
Net sales for the first quarter of 2020 decreased by 14.4% to $128.8 million.
Gross profit for the first quarter of 2020 was $21.7 million, a decline of 25.7% from the prior year quarter.
New orders for the first quarter of 2020 declined by 23.9% from the prior year quarter.
Foster
Foster
Forward Guidance
The Company anticipates continued disruption in the second quarter of 2020 as stay-at-home orders have remained in effect in the major markets served.
Positive Outlook
- Rail Products and Services are currently experiencing steady proposal activity and continuation of planned projects.
- Construction Products are currently experiencing steady proposal activity and continuation of planned projects.
- Strong balance sheet should allow the Company to effectively manage through the current environment
- Company continues to be a leading provider of products and services to the global infrastructure markets.
- Company had total available funding capacity of over $100.0 million as of March 31, 2020.
Challenges Ahead
- Company experienced disruptions in supply chains.
- Customer acceptance of material was impacted.
- Customer willingness to have L.B. Foster employees work on site was impacted.
- General weakness in demand as stay-at-home orders were enacted and global, national, and regional economic slowdowns occurred.
- Energy market does not have a favorable outlook, and the industry expects significant difficulties in funding ongoing development activity.