Blount Announces First Quarter 2013 Results
Blount International, Inc., Portland, OR, announced results for their first quarter ended March 31, 2013. Sales in the first quarter were $232.6 million, a 3% increase from the first quarter of 2012. Operating income for the first quarter of 2013 was $19.1 million compared to $13.6 million in the prior year, which included $4.9 million of facility closure and restructuring charges. First quarter net income was $9.3 million in the first quarter of 2012.
“With the first quarter behind us, we have a clearer view of 2013,” said Josh Collins, Blount’s Chairman and CEO. “At this point, business conditions remain very similar to 2012, and the challenges of current global economic conditions continue to weigh on our results, particularly in Europe.”
Farm, Ranch, and Agriculture (FRAG) segment reported first quarter 2013 sales of $60.2 million, an increase of $2.6 million from the first quarter of 2012 mainly due to improved sales of SpeeCo and agriculture cutting blade products, and stronger average pricing. The change in segment sales for the comparable first quarter periods is illustrated below.
Segment backlog was $16.6 million at March 31, 2013, compared to the $25.9 million at March 31, 2012. Backlog has decreased primarily due to improved throughput of SpeeCo products in the Company’s distribution and assembly center in Kansas City, MO.
The FRAG segment had $3.3 million of Adjusted EBITDA in the first quarter of 2013. FRAG segment contribution to operating income was negative $1.1 million after $1.2 million of depreciation expense, $3.2 million of non-cash amortization of acquired intangible assets from purchase accounting, and $2.1 million of allocated shared services expenses. The change in the first quarter 2013 contribution to operating income compared to the first quarter of 2012 is presented below.
The company’s fiscal year 2013 outlook remains unchanged. Sales are expected to range between $930 million and $980 million, and operating income to range between $88 million and $98 million. FRAG segment sales growth of one to six percent is expected — both compared to 2012 levels. In 2013, operating income is expected to experience headwind from foreign currency exchange rates of between $2 million and $3 million, and steel costs are expected to have up to an overall $1 million favorable impact for the year compared to 2012.