Actuant Corp. has announced that it expects to report a non-cash pre-tax asset impairment charge of approximately $60 million in its fourth quarter operating results.
The Menomonee Falls-based company has determined that an impairment of Mastervolt goodwill and intangible assets exists due to business underperformance since its acquisition, reduced long-term Mastervolt profit and cash flow expectations as well as weaker economic and credit conditions in Europe. While the company believes the solar industry will continue to grow globally, it has reduced its long-term profitability expectations for Mastervolt.
Actuant acquired The Netherlands-based Mastervolt in December 2010 for $150 million.
Actuant will report its fourth quarter and full year 2012 results on Sept. 27. Excluding the impairment charge, fourth quarter results are expected to be in the upper half of the previous guidance ranges. A more comprehensive review of fourth quarter and full year 2012 results will be discussed in the company’s fourth quarter earnings release and conference call scheduled for Sept. 27.