(By Balachander) Actuant Corp. (NYSE:ATU), a maker of hydraulic systems, forecasts results for the fourth quarter, excluding an impairment charge, to be in the upper half of its prior expectations.
The Menomonee Falls, Wisconsin-based company expects fourth-quarter results to include a non-cash pre-tax asset impairment charge of roughly $60 million.
"The company has determined that an impairment of Mastervolt goodwill and intangible assets exists due to business underperformance since its acquisition, reduced long term Mastervolt profit and cash flow expectations as well as weaker economic and credit conditions in Europe," Actuant said.
Actuant has reduced its long term profitability expectations for Mastervolt, while it expects the solar industry to continue to grow globally.
The company expects fourth-quarter earnings per share between 50 cents and 55 cents on sales of $400 million to $410 million. It forecasts margin expansion of 10 to 30 basis points.
Wall Street analysts, on average, expect ATU to earn 54 cents a share on sales of $410 million for the three months ending August.
For the preceding third quarter, the company posted adjusted earnings from continuing operations of 60 cents a share on sales of $429 million.
The company expects earnings per share in the range of $2.03 to $2.08 for 2012 on sales of $1.60 billion to $1.61 billion. It forecasts 2013 earnings per share between $2.15 and $2.30.
The stock, which has been trading in the 52-week range of $17.81 to $30.49, shed 0.43 percent to trade at $30.06 in early trade on Tuesday.