Menomonee Falls-based Actuant Corp. reduced its third quarter earnings guidance by more than 22 percent Thursday citing below expectation results in its energy segment.
The diversified industrial company provides hydraulic tools and position and motion control systems. Actuant said revenues for the quarter would be in line with previous guidance of $290 million to $300 million, a 2 percent drop to 1 percent increase over the previous year.
The company reduced adjusted earnings per share guidance from a range of 38 to 43 cents to 30 to 33 cents.
“While there is no doubt that delivering results below our earnings guidance is a setback in our timetable for establishing renewed credibility at Actuant, there is equally no doubt that we must focus on investing in the business from both a commercial and operational standpoint,” said Randy Baker, Actuant president and chief executive officer. “These actions, combined with active portfolio management, will position the company for long-term success regardless of market conditions.”
The company said operating margins in the energy segment were well below expectations because of lower customer maintenance activity, spending levels and weakened upstream offshore demand.
Actuant’s energy segment accounted for about 34 percent of the company’s revenue in fiscal 2016.