Foster Q1 2021 Earnings Report
Key Takeaways
L.B. Foster reported a decrease in net sales and gross profit for the first quarter of 2021, with net sales at $116.1 million and gross profit at $18.8 million. The company experienced a net loss from continuing operations of $1.3 million, or $0.12 per diluted share. However, backlog increased by 14.6% to $271.9 million, and net debt decreased to $31.8 million.
Net sales decreased by 4.8% year-over-year to $116.1 million.
Gross profit declined by 18.6% year-over-year to $18.8 million, with a gross profit margin of 16.2%.
Net loss from continuing operations was $1.3 million, or $0.12 per diluted share.
Backlog increased by 14.6% year-over-year to $271.9 million, driven by Rail Technologies and Services and Infrastructure Solutions segments.
Foster
Foster
Forward Guidance
The Company anticipates a significant sequential increase in second quarter sales and profitability, expecting sales to increase by 20.0% or more. Gross profit margins are expected to improve sequentially, and selling and administrative expenses should leverage favorably with the increase in sales.
Positive Outlook
- Increasing project activity
- Customer-specific plans for capital spending
- Government support for transportation sector investment
- Improving outlook due to fewer virus-related disruptions
- Strong backlog and an improving economic outlook
Challenges Ahead
- Continued deferral of projects in the midstream pipeline markets
- Weather-related delays
- Working restrictions due to the pandemic
- Coatings and Measurement business line expected to remain weak
- Potential for additional shutdowns or furlough periods in the Coatings and Measurement business line