Milwaukee-based Rexnord Corp. today reported a fiscal second quarter net loss of $52.5 million, or 54 cents per share, compared with a net income of $19.2 million, or 19 cents per share, in the same period a year ago.
The company’s quarterly net sales grew to $514.5 million from $499.5 million a year earlier.
Todd Adams, president and chief executive officer of Rexnord, said, “We delivered a solid second quarter as operating earnings grew 10 percent and adjusted earnings per share increased 29 percent on 3-percent core sales growth. During the quarter we completed a debt refinancing that significantly improves our free cash flow, provides $0.30 of annualized EPS accretion and extends our debt maturity profile. We also completed accretive acquisitions within our Aerospace and Zurn businesses allowing us to expand our served markets and product offerings in these growth end-markets. In Process and Motion Control, core sales grew 1 percent and our adjusted EBITDA margin was 25 percent amidst stable demand within our industrial end-markets. Water Management core sales grew 6 percent year-over-year driven by high single digit growth in our Zurn business and single digit growth in our VAG business while posting a 1.16 book to bill ratio (1.15 in the first half of fiscal 2014). Looking to our second half, we believe we can continue to outperform our served markets in both segments, drive margin improvement and deliver solid free cash flow.”