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Sep 30, 2021
Foster Q3 2021 Earnings Report
Reported third quarter operating results with increased net sales and backlog.
Key Takeaways
L.B. Foster reported a 9.9% increase in net sales compared to the third quarter of 2020, driven by strength in rail, precast concrete products, and fabricated steel business lines. The company's backlog increased by 9.8% and new orders increased by 18.5%, both adjusted for the divestiture of the Piling business.
Net sales increased by 9.9% compared to the third quarter of 2020.
Gross profit increased slightly by 1.0% year-over-year.
Net income from continuing operations decreased by $1.35 per diluted share compared to the prior year quarter.
Backlog increased by 9.8% compared to the prior year quarter, adjusted for the divestiture of the Piling business.
Forward Guidance
The Company expects to benefit from infrastructure investment activity and has the capability to execute on organic and acquisitive growth opportunities in 2022 and beyond.
Positive Outlook
- Order activity continues to strengthen, particularly in the Rail segment.
- Optimistic outlook regarding longer-term trends in the North American transit and freight markets.
- Businesses will continue to directly benefit from infrastructure investment activity, particularly if a U.S. Federal infrastructure bill is passed.
- Significant capability to execute on organic and acquisitive growth opportunities in 2022 and beyond.
- Additional flexibility and capacity resulting from its recently amended credit agreement.
Challenges Ahead
- Global ridership levels remain depressed relative to pre-pandemic levels, which is expected to continue to adversely impact friction management consumable sales.
- The Coatings and Measurement business line is expected to remain weak.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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