Luxfer Beats on Q4 Earnings, Down Y/Y
Luxfer Holdings PLC (LXFR) reported adjusted earnings per American Depositary Shares (ADS) of 40 cents in fourth-quarter 2013, down from 45 cents earned in the year-ago quarter. However, the bottom-line result surpassed the Zacks Consensus Estimate of 37 cents.
In 2013, adjusted earnings per ADS were $1.42, down 30.7% year over year but above the Zacks Consensus Estimate of $1.40.
Revenues
Luxfer Group generated revenues of $116.0 million in the fourth quarter, down 10.8% year over year.
The Gas Cylinders Division generated roughly $64.1 million in revenues, down 9.3% year over year due to lower sales of industrial gas cylinders and composite life-support cylinders in Europe and the United States. The Elektron Division’s revenues amounted to $51.9 million, down 12.5% year over year due to persistent weakness in the European automotive market as well as the U.S. defense market.
In 2013, revenues were $481.3 million, down from $511.6 million in 2012.
Costs/Margins
Cost of sales in the fourth quarter decreased 13.0% year over year and represented 74.1% of total revenue, down from 76.1% reported in the year-ago quarter. Distribution and administrative costs, as a percentage of total revenue, came in at 1.6% and 11.4%, respectively.
Adjusted earnings before interest, tax, depreciation and amortization were $19.8 million versus $20.0 million in the year-ago quarter.
Balance Sheet
Exiting fourth-quarter 2013, Luxfer’s cash and short-term deposits balance was $28.4 million, down from $38.1 million in the previous quarter. Bank and other loans at the quarter-end were $63.8 million, flat versus the prior quarter.
Cash Flow
Luxfer generated roughly $7.3 million cash from operating activities in the fourth quarter, which was below $17.3 million generated in the year-earlier quarter. Capital expenditure increased 8.6% year over year to $10.1 million.
In 2013, the company paid roughly $10.8 million dividends, an increase from $5.8 million paid in 2012.
In conjunction with the earnings release, Luxfer also announced that its German subsidiary, Luxfer Gas Cylinders, has won a contract to supply bulk natural gas transportation modules to Sub 161, a Queensland-based company.
Luxfer Holdings currently has a market capitalization of $529 million and operates in the diversified machinery industry. Three stocks in the machinery industry that posted better-than-expected results in fourth-quarter 2013 include Crane Co. (CR), CommScope Holding Company, Inc. (COMM) and Lennox International, Inc. (LII).
Read the Full Research Report on LXFR
Read the Full Research Report on LII
Read the Full Research Report on CR
Read the Full Research Report on COMM
Zacks Investment Research
