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Dec 31, 2020
Foster Q4 2020 Earnings Report
L.B. Foster's Q4 2020 results were impacted by the pandemic and weakness in the energy market, with sales and gross profit declining year-over-year.
Key Takeaways
L.B. Foster reported a decrease in net sales and gross profit for the fourth quarter of 2020, primarily due to the impact of the COVID-19 pandemic and weakness in the energy market. Net income from continuing operations was $2.3 million, or $0.21 per diluted share. New orders decreased by 23.4% from the prior year, but backlog increased by 8.4%.
Net income from continuing operations decreased to $2.3 million, or $0.21 per diluted share.
Net sales decreased by 18.2% to $115.6 million, with a significant portion of the decline from divisions serving midstream energy customers.
New orders decreased by 23.4%, while backlog increased by 8.4%, driven by Rail and Infrastructure segments.
Gross profit decreased by 23.1% to $21.7 million, with a gross profit margin of 18.8%.
Revenue by Segment
Forward Guidance
The company anticipates continued disruption at least through the first half of 2021 as various restrictive measures have remained in effect in the major markets we serve. The Rail segment is anticipating further recovery in Rail Technologies, although continued pandemic-related lockdowns in the United Kingdom may hamper such recovery in the near term. Current project inquiries lead the Company to believe that the first half of 2021 will improve modestly from this level.
Positive Outlook
- Rail Products bookings were strong in the fourth quarter of 2020, reflecting a $15.1 million increase over the third quarter of 2020.
- Projects associated with long-term planning have been moving forward.
- The Fabricated Steel Products division experienced substantial year-over-year increases in backlog of $22.3 million.
- The Precast Concrete Products division continues to benefit from new infrastructure projects, which is reflected in a year-over-year backlog increase of $7.0 million.
- Current project inquiries lead the Company to believe that the first half of 2021 will improve modestly from this level.
Challenges Ahead
- The Company anticipates continued disruption at least through the first half of 2021 as various restrictive measures have remained in effect in the major markets we serve.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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