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Jun 30, 2021
Foster Q2 2021 Earnings Report
L.B. Foster's operating results increased due to strength in the rail, precast concrete products and fabricated steel markets.
Key Takeaways
L.B. Foster reported a net sales increase of 9.2% year-over-year, driven by the Rail Technologies and Services segment. Net income from continuing operations was $2.9 million, or $0.27 per diluted share. The company's backlog increased by 12.4% to $253.2 million.
Net sales increased by 9.2% year-over-year to $154.5 million.
Gross profit decreased by 7.0% year-over-year to $26.2 million.
Net income from continuing operations was $2.9 million, or $0.27 per diluted share.
Backlog increased by 12.4% to $253.2 million compared to the prior year quarter.
Revenue by Segment
Forward Guidance
The Company anticipates its Precast Concrete Products and Fabricated Steel business lines to continue to directly benefit from current infrastructure investment trends and remains optimistic about its prospects for year over year revenue growth in the second half of 2021.
Positive Outlook
- Strong order activity for infrastructure projects.
- Easing pandemic restrictions in the United Kingdom provide a favorable outlook for rail operations in Europe.
- Precast Concrete Products and Fabricated Steel business lines to benefit from infrastructure investment trends.
- Divisions in Precast Concrete Products and Fabricated Steel operating at near-capacity levels.
- Company remains optimistic about year-over-year revenue growth in the second half of 2021.
Challenges Ahead
- Coatings and Measurement business line expected to remain weak.
- Coatings and Measurement business unit continues to face significant headwinds.
- Further cost mitigation actions, including additional shutdowns or furlough periods, could be implemented in certain divisions of the Coatings and Measurement business unit if order rates do not improve.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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