Actuant Corp. said Wednesday it will announce lower-than- forecast sales and earnings for the recently completed quarter, and withdrew its projections for the full fiscal year.

Less than a week before the company is scheduled to report fiscal third quarter earnings, Actuant said it will take restructuring costs of $12 million -- or $4 million to $6 million more than it had forecast previously. Those costs will reduce earnings by 4 to 6 cents a share.

Actuant now expects to earn 6 to 8 cents a share, on sales of $290 million for the three months ended May 31. The company said previously it was expecting a profit of 12 to 20 cents a share, on sales of $300 million to $320 million.

The Butler-based company makes industrial tools, electrical supplies, and motion-control and lifting systems. The reduced sales and higher costs came as Actuant accelerated its restructuring activity amid continued economic weakness, the company said.

Despite the harsh economic environment, Actuant said it generated near-record cash flow in the quarter of $65 million or $1 a share.

Actuant also announced:

- It plans to take a pre-tax charge of $31 million to $33 million to reduce the value of its "harsh environment" electrical product line, used in the boating industry. The non-cash charge is a result of the decline in boat industry sales that has caused boat manufacturers to suspend operations and close facilities, Actuant said.

- The company renegotiated its credit agreement, which will result in interest costs rising by $2 million a year. The $4 million cost of the credit amendment will be spread out over the next 28 months, the company said.

In addition to withdrawing its earnings guidance for the rest of the year, Actuant said it will not offer earnings guidance for the fiscal year that begins Sept. 1, until Sept. 30.

More details about the company's business and its outlook will be discussed Tuesday during Actuant's earnings conference call.

Copyright 2009, Journal Sentinel Inc. All rights reserved. (Note: This notice does not apply to those news items already copyrighted and received through wire services or other media.)

(c) 2009 Milwaukee Journal Sentinel. Provided by ProQuest LLC. All rights Reserved.

A service of YellowBrix, Inc.