Milwaukee-based Rexnord Corp. increased profit and revenue during the second quarter, even though topline results were slightly weaker than expected.
The control and water management manufacturer reported net income of $24.6 million, up 8.8 percent from the prior year. Earnings increased from 22 to 24 cents per diluted share.
Those results came from revenue of $491 million, a 1 percent increase from the prior year. Core sales were down 2 percent, excluding a 1 percent loss from exiting the Rodney Hunt Fontaine product line. Acquisitions added 4 percent to revenue.
“Our second quarter operating results were broadly in line with our expectations, despite the modestly weaker than expected overall sales level,” said Todd Adams, Rexnord president and chief executive officer. “While the demand environment remains challenging, our focus to deliver greater value to our customers and earn more of their business is having a positive impact.”
Adams said the company’s supply chain optimization and footprint repositioning initiatives are on track to deliver $30 million in annual savings, but the company is adding 60 days to the project to ensure successful execution.
Rexnord’s process and motion control segment reported net sales of $287 million, up 7 percent from the previous year. The Cambridge acquisition added 8 percent to revenue, offsetting lower core sales from lower demand in original equipment manufacturer and end user industrial markets.
The water management segment was down 6 percent to $204 million with a 4 percent drop in core sales from lower shipments to global water and wastewater infrastructure end markets.
The company lowered its guidance for the second half of the year, with Adams citing “the ongoing deceleration of project schedules in Middle East water infrastructure markets and a more conservative outlook for the near-term trajectory of growth in our nonresidential construction and process industry end markets.”
