Milwaukee-based Rexnord Corp. reported fiscal fourth quarter net income of $32.5 million, or 34 cents per share, down from $39.9 million, or 38 cents per share, in the fourth quarter of 2014.
Operating income at the process and motion control and water management product manufacturer was $32.4 million in the fourth quarter, down from $78 million in the same period a year ago.
Revenue totaled $518.5 million in the quarter, down from $560.8 million in the fourth quarter of 2014.
The company attributed the decline in part to $12 million of delayed water infrastructure project shipments and the weather-delayed seasonal ramp in U.S. construction activity.
For the full year, net income was $83.8 million, or 88 cents per share, up from $29.6 million, or 25 cents per share, in 2014. The increase was the result of a comparison with a $133.2 million loss on the extinguishment of debt last year.
Full-year operating income was $203.7 million, down from $272.4 million last year.
And revenue for 2015 totaled $2.1 billion, up from $2 billion in 2014.
“Our fourth quarter results were broadly in line with our expectations with the exception of some weather and project-related delays that impacted fourth quarter sales in our Water Management platform,” said Todd Adams, president and chief executive officer. “Despite this, we were able to deliver record free cash flow of $203 million for the year, which represented 128 percent of adjusted net income. Our base case expectations heading into fiscal 2016 are for relatively challenging market conditions in our industrial end-markets and continued strength in our water related end-markets. We’ve positioned ourselves to continue to drive strong margins and improve upon our robust free cash flow with the implementation of an RBS-led, comprehensive supply chain optimization and footprint repositioning plan we’ve developed over the past year, which we believe should deliver approximately $30 million of annualized savings once fully implemented.”