Menomonee Falls-based Actuant Corp. reported third quarter net income of $38 million, or 63 cents per share, down from $50.1 million, or 70 cents per share, in the third quarter of 2014.
Operating income was $43 million, down from $58.8 million in the same period a year ago. The company’s selling, administrative and engineering spending was down 17 percent, but an unfavorable mix and lower production and absorption levels as it reduced inventory dragged its operating margin down.
Revenue totaled $320.1 million in the third quarter, down 15 percent from $378.2 million in the third quarter of 2014. About 7 percent of that decline was attributable to unfavorable foreign currency translation, the company said. Core sales were down 8 percent.
“Excluding the impact of foreign currency assumptions, third quarter sales and operating profit were modestly lower than our expectations,” said Mark Goldstein, president and chief executive officer. “Demand from oil & gas, mining, agriculture and general industrial markets weakened as the quarter progressed. As anticipated, the Energy segment’s core sales turned negative due to well-publicized oil & gas headwinds, including reduced capital spending, project and maintenance deferrals and pricing. Industrial demand decelerated globally, in part reflecting distributor destocking as well as end-user spending reductions. Engineered Solution’s core sales improved sequentially as higher truck volumes more than offset the expected moderation in agriculture demand.
“In light of the continued weak conditions in several end markets, we have further heightened our focus on cost management and productivity improvements.”