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Mar 31, 2020
JBT Q1 2020 Earnings Report
JBT exceeded first quarter guidance, but withdrew full-year guidance due to COVID-19 uncertainties.
Key Takeaways
JBT Corporation reported a 10% increase in revenue to $457.7 million for the first quarter of 2020. Operating income was $43.7 million and net income was $29.0 million. Adjusted EBITDA expanded 28% to $65.7 million.
Exceeded guidance for first quarter 2020 but withdrew full-year 2020 guidance due to COVID-19 uncertainties
Focused on protecting the health and safety of associates globally while maintaining ability to service customers
Maintained solid balance sheet and liquidity position while proactively managing operations and costs
Plays a very important role in sustaining supply of food to the world
Forward Guidance
The Company foresees a 10 - 15 percent sequential decline in revenue in the second quarter of 2020, with an estimated 5 percent decline at FoodTech and an estimated 30 percent decline at AeroTech. The Company is withdrawing earnings guidance for full year 2020 due to the limited visibility into the length of the pandemic and the severity of its impact on JBT, its customers, and suppliers.
Positive Outlook
- Operating results in both segments will benefit from cost reductions.
- FoodTech operating margins could remain consistent sequentially.
- AeroTech revenue could be flat to up sequentially.
- Confident in JBT's ability to manage through challenges.
- Capitalize on opportunities created from market changes.
Challenges Ahead
- Tremendous uncertainty in the marketplace resulting from the pandemic.
- 10 - 15 percent sequential decline in revenue in the second quarter of 2020.
- Estimated 5 percent decline at FoodTech.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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