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Nov 30, 2020
Azz Q3 2021 Earnings Report
Reported earnings per share of $0.76 and net income of $19.7 million, despite challenges from the COVID-19 pandemic.
Key Takeaways
AZZ Inc. reported third quarter fiscal year 2021 results with earnings per share of $0.76 and net income of $19.7 million. Sales for the quarter were $226.6 million, a decrease of 22.2% compared to the same period last year. The company is strategically restructuring its portfolio to focus on the metal coatings business.
Earnings per share of $0.76 and net income of $19.7 million, including net charges of $1.6 million related to the divestiture of Southern Mechanical Services (SMS).
Sales of $226.6 million, increased sequentially by 11.4% from the second quarter.
Metal Coatings segment sales decreased 10.5% to $115.6 million, while operating income increased 5.2% to $28.7 million.
Infrastructure Solutions segment sales decreased 31.5% to $111.0 million, and operating income decreased 49.9% to $8.7 million.
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Azz Revenue by Segment
Revenue by Segment
Metal Coatings Revenue
CapyFin.com Forward Guidance
AZZ Inc. anticipates fiscal 2021 fourth quarter financial results to exceed the fiscal 2020 fourth quarter adjusted earnings per share of $0.47 per diluted share, but expects fourth quarter results to be below the third quarter results. The company continues to suspend full fiscal year 2021 guidance due to COVID-19 disruptions.
Positive Outlook
- Strong cash flow generation will help manage debt and liquidity effectively.
- Focus on capital expenditures on core growth initiatives and safety-related spending.
- Reducing debt and repurchasing shares to enhance shareholder value.
- Integrating the acquisition of Acme Galvanizing to drive market share growth and operating efficiencies.
- Building backlog in the Infrastructure Solutions segment.
Challenges Ahead
- Ongoing COVID-related travel restrictions within certain geographical areas served by Infrastructure Solutions teams.
- Expects fourth quarter results to be below the third quarter results.
- Continued disruption from COVID-19.
- Weak oil demand impacting refining turnaround projects.
- Lower orders in China due to decreased sales efforts in the region.