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Sep 30, 2021
JBT Q3 2021 Earnings Report
JBT Corporation experienced robust demand offset by intensified supply chain, labor, and inflationary pressures.
Key Takeaways
JBT Corporation reported a 14% increase in revenue to $477 million for the third quarter of 2021. While demand remained strong, intensifying macro pressures, including material cost inflation, supply chain disruptions, and labor shortages, negatively impacted the results.
Revenue of $477 million and earnings per share of $0.91, or $1.02 as adjusted
Orders increased 24 percent year over year with expansion at FoodTech and AeroTech
Generated strong operating cash flow of $33 million and free cash flow of $32 million
Adjusting full-year guidance to reflect impact from supply chain disruptions and labor challenges
JBT
JBT
Forward Guidance
JBT has adjusted its full-year 2021 guidance to reflect greater than anticipated supply chain, labor, and inflationary pressures.
Positive Outlook
- FoodTech expects revenue growth of 13.5 - 14.5 percent for full-year 2021.
- FoodTech operating margins are projected at 13.75 - 14.0 percent with adjusted EBITDA margins in the 18.75 - 19.0 percent range.
- Based on record backlog, FoodTech has an attractive revenue set up for 2022.
- AeroTech anticipates revenue growth in the low double digits to mid-teens in 2022 given its near record backlog.
- Earnings per diluted share guidance for full year 2021 is $3.70 - $3.80 on a GAAP basis and $4.15 - $4.25 on an adjusted basis.
Challenges Ahead
- AeroTech anticipates a revenue decline of approximately 3 percent compared to 2020.
- AeroTech operating and adjusted EBITDA margin guidance is 7.75 - 8.25 percent and 8.75 - 9.25 percent, respectively.
- JBT expects total revenue expansion of 9 to 10 percent for the full year.
- Corporate expense is expected to be approximately 2.6 percent of revenue.
- Interest expense for 2021 is forecasted at $9 million and the tax rate is expected to be approximately 24.5 percent, excluding discrete items.