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Jun 30, 2020
Zurn Elkay Q2 2020 Earnings Report
Rexnord's financial performance was affected by the COVID-19 pandemic, but cost management and strategic initiatives helped mitigate the impact.
Key Takeaways
Rexnord Corporation reported net sales of $449 million, a 12% decrease compared to the previous year's June quarter. Net income from continuing operations was $36 million, or $0.29 per diluted share, compared to $49 million, or $0.39 per diluted share, in the year-ago quarter. Adjusted EPS was $0.36, down from $0.48 in the prior year, while Adjusted EBITDA was $103 million, representing 23.0% of net sales.
Net sales decreased by 12% year-over-year, with a 12% decline in core sales.
Net income from continuing operations was $36 million, with diluted EPS of $0.29.
Adjusted EPS was $0.36, compared to $0.48 in the year-ago quarter.
Adjusted EBITDA was $103 million, representing 23.0% of net sales.
Forward Guidance
For the September quarter, the company expects sales to decline between 12% and 17%, total segment Adjusted EBITDA margin to range between 22% and 24%, and corporate expenses to approximate $8 million.
Positive Outlook
- Cost reduction initiatives implemented
- Order backlogs heading into the quarter
- July results
- Anticipated demand patterns through September
Challenges Ahead
- Persistent uncertainties created by the COVID-19 pandemic
- Unknown duration of the COVID-19 pandemic
Historical Earnings Impact
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Avg. Return Before/After Earnings
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