Menomonee Falls-based Actuant Corp. expects its revenue to be up slightly in fiscal 2018 based on strength from its industrial and engineered solutions segments while the energy segment will continue to be down.
The company reported a net loss of $66.2 million for fiscal 2017, an improvement over the $105.2 million loss in 2016. The per share loss improved from $1.78 to $1.11, but adjusted earnings declined from $1.22 to 83 cents per share.
“The fourth quarter came in largely as expected, with continued positive momentum within industrial tools, broad-based OEM production increases within Engineered Solutions, offset by persistent challenges within the served energy market,” said Randy Baker, Actuant president and chief executive officer. “While many challenges remain, I am confident in the progress we are making on our commercial, operational, and portfolio management strategies and I want to extend my appreciation to the entire Actuant organization for their hard work and accomplishments in 2017.”
Actuant, which provides hydraulic tools, products and services along with position and motion control systems, saw revenue decline by 4.7 percent for the year to $1.1 billion. The decline was driven by the company’s energy segment, which was down 23 percent for the year amid lower oil prices.
The company has sought to address some of the challenges by selling its Viking SeaTech business. The $12 million sale to Aceteon Group was announced in August, along with the acquisition of Acteon’s Mirage tool business.
Actuant is also in the midst of restructuring actions aimed at making its business more profitable. Those actions include consolidating the leadership of the industrial and energy segments following the departure of two executive vice presidents. Baker said the company is continuing the process of looking for someone to fill the combined position.
“We’re talking about back office consolidation. How do we share how we run the business external to what the customer sees?” he said. “These are distinctly different businesses and they deserve distinctly different approaches in the market place and ramming them together for the sake of the savings would only damage those businesses.”
The restructuring program also includes facility closures and consolidations during the first half of fiscal 2018, although no specific actions were announced during an earnings call Wednesday.
All told the program is expected to cost the company $10 million to $14 million and generate $7 million to $9 million in annual savings.
“We continue to reinvigorate organic growth and create a more efficient company by improving our execution and reducing structural costs,” Baker said “We believe that these actions, along with portfolio management initiatives, will best position the company to succeed throughout market cycles and improve long term shareholder value.”
