Azz Q4 2021 Earnings Report
Key Takeaways
AZZ Inc. reported a decrease in sales and net income for both the fourth quarter and the full fiscal year 2021, impacted by the COVID-19 pandemic. However, the Metal Coatings segment demonstrated improved operating margins. The company reaffirms fiscal year 2022 revenue and earnings per share guidance.
Fourth quarter sales decreased by 20.3% to $195.6 million compared to the prior year.
Net income for the quarter was $16.2 million, or $0.63 per share.
Metal Coatings segment sales decreased by 13.6%, but operating income increased by 17.6%.
Infrastructure Solutions segment sales decreased by 27%, with operating income increasing significantly due to prior year charges.
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Azz Revenue by Segment
Forward Guidance
AZZ Inc. reaffirms its fiscal year 2022 revenue and earnings per share guidance, with revenue expected to be between $835 million and $935 million, and earnings per share between $2.45 and $2.95.
Positive Outlook
- Focus on growing the Metal Coatings segment.
- Building backlog for enclosures, switchgear and welding solutions in the Infrastructure Solutions segment.
- Access to capital to sustain operations.
- Opportunities for organic growth.
- Actively seeking strategic growth opportunities and returning capital to shareholders.
Challenges Ahead
- COVID-related travel restrictions within certain geographical areas served by the Infrastructure Solutions teams.
- Potential federal regulatory changes.
- Ongoing COVID-19 pandemic could adversely impact customers and operations.
- Fluctuations in prices and raw material costs, including zinc and natural gas.
- Supply-chain vendor delays and customer requested delays.