Message #12 From:
NewsBot Date: December 7, 2006 01:05:00 PM
ESL News Esterline Reports 4Q Earnings of $18.4 Million, or $.71 from Continuing Ops, on Sales of $270.3 Million
BELLEVUE, Wash.--(BUSINESS WIRE)--Esterline Corporation (NYSE:ESL)(www.esterline.com),
a leading specialty manufacturer serving aerospace/defense markets,
today reported fourth quarter income from continuing operations of
$18.4 million, or $.71 per diluted share, on sales of $270.3 million. In
the same period last year, income from continuing operations was
$15.4 million, or $.60 per diluted share, on $224.1 million sales.
Orders received in the fourth quarter totaled $288.2 million. This
compared with orders of $204.2 million a year ago. Backlog at year-end
was $653.5 million compared with $482.8 million at the end of the
prior-year period.
Full year 2006 income from continuing operations was $55.6 million, or
$2.15 per diluted share. The prior year’s
income from continuing operations was $51.0 million, or $2.02 per
diluted share. Including net income from discontinued operations of
$7.0 million, or $0.27 per diluted share, net earnings in fiscal 2005
were $58.0 million or $2.29 per diluted share. Sales in fiscal 2006 were
$972.3 million compared with last year’s
sales of $835.4 million in fiscal 2005.
Robert W. Cremin, Esterline CEO, said the company’s
fourth quarter performance “…ended
the year on a strong note.” And he emphasized
that “…the 19%
improvement in net income over last year’s
fourth quarter performance included a significantly increased R&D
investment — $14.9 million compared with
$12.1 million in the same quarter last year.”
Cremin noted that the year wasn’t without
challenges, including an explosion at a newly acquired UK business, a
disappointing performance in its Sensors & Systems segment and
disruptions in certain Chinese exports. “Despite
these setbacks,” Cremin said, “I
would still characterize Esterline’s
full-year performance as solid — and
particularly reflective of the company’s good
balance.”
Regarding the explosion, Cremin said, “…production
at Wallop’s north-side facility is now
operating at pre-accident levels.” He said
that although the new south facility is still closed, and will remain so
for at least another nine months, “…negotiations
with our insurance providers are going well.”
Related to the incident, the company recorded a $4.9 million insurance
recovery in the fourth quarter.
He also said that plant productivity is back to normal levels at the
company’s sensors operation.
Looking forward, Cremin said he anticipates a “…solid
year ahead for Esterline, supported by record backlogs, new products
coming to market, and R&D expenses moderating.”
Reflecting that confidence, the company adjusted its FY07 EPS guidance
range to $2.45 to $2.60 per share, the mid-range of which represents a
17% increase over FY06.
Emphasizing Esterline’s normal seasonality,
Cremin noted that the company’s first quarter
has the fewest working days due to the number of holiday-related plant
closures. He said that when considering performance in FY07, investors
should expect “…EPS
in the first couple of quarters to be very similar to their respective
FY06 quarters, ramping up strongly in the second half as new programs
begin to kick in and R&D expense comes down.”
This press release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.These
statements relate to future events or our future financial performance.
In some cases, you can identify forward-looking statements by
terminology such as “anticipate,”“believe,”“continue,”“could,”“estimate,”“expect,”“intend,”“may,”“might,”“plan,”“potential,”“predict,”“should”
or “will,” or the
negative of such terms, or other comparable terminology.These
forward-looking statements are only predictions based on the current
intent and expectations of the management of Esterline, are not
guarantees of future performance or actions, and involve risks and
uncertainties that are difficult to predict and may cause Esterline’s
or its industry’s actual results, performance
or achievements to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking
statements.Esterline's actual results and the timing and outcome
of events may differ materially from those expressed in or implied by
the forward-looking statements due to risks detailed in Esterline's
public filings with the Securities and Exchange Commission.
EDITOR: See attached Consolidated Statement of Operations and
Consolidated Balance Sheet
