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Dec 31, 2020
Zurn Elkay Q4 2020 Earnings Report
Rexnord reported December quarter 2020 financial results.
Key Takeaways
Rexnord reported net sales of $490 million, a slight decrease compared to the previous year. Net income was $37 million, with adjusted EPS at $0.39. The company highlighted growth in its Water Management platform and improving conditions in its Process & Motion Control platform, excluding aerospace.
Net sales were $490 million, slightly down from $492 million year-over-year.
Net income reached $37 million (diluted EPS of $0.30), a decrease from $46 million (diluted EPS of $0.39) in the prior year.
Adjusted EPS was $0.39, compared to $0.48 in the year-ago quarter.
Adjusted EBITDA was $96 million (19.6% of net sales), down from $107 million (21.8% of net sales) in the previous year.
Zurn Elkay
Zurn Elkay
Forward Guidance
Rexnord anticipates sales in its Water Management platform to increase year over year by a high-single-digit percentage rate, with an Adjusted EBITDA margin between 25% and 26%. The PMC platform is expected to see a low-double-digit percentage rate decrease in sales, including a 45% to 50% decline in aerospace, and an Adjusted EBITDA margin between 22.5% and 23.5%. Corporate expenses are projected to be approximately $10 million. For the full year 2021, the company expects mid-single-digit percentage range sales growth and modest margin expansion.
Positive Outlook
- Water Management platform sales expected to increase year over year by a high-single-digit percentage rate.
- Water Management Adjusted EBITDA margin to range between 25% and 26%.
- Permanent cost reduction initiatives implemented.
- Order backlog heading into 2021.
- Anticipated range of demand patterns through March.
Challenges Ahead
- PMC platform sales expected to decrease year over year at a low-double-digit percentage rate.
- 45% to 50% decline in sales in the aerospace end market.
- PMC Adjusted EBITDA margin to range between 22.5% and 23.5%.
- Corporate expenses to approximate $10 million.
- External outlook is guarded due to the potential range of outcomes based on the ongoing global pandemic.