Milwaukee-based Rexnord Corp. reported fiscal third quarter net income of $28.6 million, or 29 cents per share, up sharply from $9.2 million, or 12 cents per share, in the third quarter of 2013.
The global company, which makes process and motion control and water management products, reported revenue of $489.1 million, up 4 percent from 471.7 million in the same period a year ago.
The water management segment did particularly well, with a 12 percent increase in net and core sales over 2013, to $188 million. Rexnord attributed the growth to grabbing additional market share in most of the industries it serves, and increased alternative market sales.
Rexnord completed its acquisition of Ohio-based gearing and gearbox manufacturer Precision Gear Holdings LLC in the third quarter.
“We are pleased with our third quarter results and overall levels of core growth, profitability and free cash flow,” said Todd Adams, president and chief executive officer. “As it relates to each of our platforms, the 12 percent core growth and 160 basis point adjusted operating margin improvement in our Water Management platform aligns with our expectations of accelerating growth and margin improvement within the platform while the outlook in our served markets continues to improve. In Process & Motion Control, we are encouraged by the very strong margin performance amidst, in aggregate, a stable set of industrial end markets that we expect to improve over the next several quarters. Finally, our strong free cash flow in the quarter allowed us to both de-lever and acquire Precision Gear Holdings, which expands our exposure to the energy and aerospace end markets.”
The company increased its full year guidance for adjusted earnings per share to $1.39, up from $1.35.
Rexnord also announced it will launch a public offering of 3 million shares of common stock.
The company plans to use the proceeds of the sale for “general corporate purposes.”
Apollo Global Management, board chairman George Sherman and some of his affiliates also plan to resell 11 million shares of common stock.