Milwaukee-based Rexnord Corp. reported fiscal fourth quarter net income of $39.9 million, or 39 cents per share, up from $23.9 million, or 24 cents per share, in the fourth quarter of 2013.
Net sales for the quarter were $569.7 million, up from $540.3 million in the same period a year ago.
“We’re pleased with our fourth quarter results in light of some challenging market conditions during the quarter,” said Todd Adams, president and chief executive officer. “Core sales growth improved to 4 percent in the quarter, while our adjusted EBITDA margin was 21 percent. Despite the drag from unusually adverse winter weather and the impact of project shipment timing in Water Management, we achieved our adjusted EPS guidance for the fourth quarter and fiscal year.”
For the full year, the process and motion control and water management platform manufacturer reported net income was $29.6 million, down from $50.1 million in 2013.
Full-year net sales were $2.1 billion, up from $2 billion last year.
“In our Process & Motion Control platform, we are seeing ongoing stability in most of our end markets,” Adams said. “Core growth is expected to remain modest in the near term, driven by a lower backlog that impacts the first half of the year, but will be augmented by a full-year contribution from Precision Gear Holdings, which we acquired in December 2013. Looking forward, we expect margins to expand meaningfully (in Water Management) in fiscal 2015, and we continue to believe we will see significant benefits from a recovering non-residential construction market and from ongoing global investment in water infrastructure.”
“Looking ahead, the investments we have made in innovation, globalization and operational excellence driven through the Rexnord Business System gives us confidence in our ability to drive continued long-term growth and strong operating performance in the platform,” he said.