JBT Q4 2021 Earnings Report
Key Takeaways
JBT Corporation reported a 13% increase in revenue for Q4 2021, reaching $498 million. EPS was $0.99, or $0.92 as adjusted. The company experienced challenges due to supply chain disruptions and labor shortages, impacting productivity and output.
Achieved orders of $587 million, including record orders at FoodTech of $455 million.
Revenue of $498 million and earnings per share of $0.99, or $0.92 as adjusted.
Closed acquisition of Urtasun, a provider of fruit and vegetable processing solutions.
FoodTech orders increased 25 percent, and AeroTech orders increased 3 percent compared to the fourth quarter of 2020.
JBT
JBT
Forward Guidance
JBT anticipates consolidated revenue growth in the mid-to-high teens for full year 2022. Supply chain and labor challenges are expected to constrain consolidated margins in the first half of 2022, while improving sequentially each quarter from the low point in the first quarter.
Positive Outlook
- FoodTech organic revenue growth is expected to increase approximately 12 - 15 percent with an additional 3 percent growth from acquisitions.
- AeroTech revenue is expected to increase 15 - 20 percent.
- The Company expects consolidated margins to be slightly above 2021 levels for the full year.
- Significant investment in support of our digital strategy.
- Capital expenditures are expected to be $90 - $95 million, which includes approximately $45 million of capitalized investment in support of our digital strategy.
Challenges Ahead
- Supply chain and labor challenges are expected to constrain consolidated margins in the first half of 2022.
- Corporate expense will increase driven by a significant investment in support of our digital strategy, totaling approximately $14 to $15 million, coupled with rising labor costs and return to a normalized level of incentive compensation.
- Interest expense is forecast to be $10 million.
- The corporate tax rate is forecast to be 23 - 24 percent.
- Free cash flow conversion is forecast to be below 100 percent due to higher capital expenditures and investment in working capital to support expected revenue growth.