Magnetek (MAG) Reports Q4 EPS of $1.01

Magnetek (NASDAQ: MAG) reported Q4 EPS of $1.01, versus $0.22 reported last year. Revenue for the quarter came in at $29 million, versus $25.2 million reported last year.

Operations and Outlook

Total bookings of $27.2 million for the fourth quarter of fiscal 2014 were up more than 3% over the prior year fourth quarter, resulting in a book-to-bill ratio for the quarter of 94%. Total Company order backlog was $12.7 million at December 28, 2014.

“Recent economic data appear mixed, as the economy in the U.S. grew in the fourth quarter, but not as strongly as expected. In addition, commodity prices continued to fall and the US dollar gained strength. Nearly 90 percent of our revenues are US-based, so we have little direct exposure to currency issues and global end market conditions, however, our customer and end-user base does include some larger, multi-national industrial companies,” said Mr. McCormick. “Currently our business remains with solid momentum heading into 2015. However, historically our first quarter has been the weakest quarter of the year due to seasonal buying patterns of our customers, mainly in material handling. We typically experience sequential sales declines in the first quarter of the year in the range of 10 to 15 percent, and we expect that to be the case in 2015 as well. Looking beyond that, our growth initiatives in 2015 remain centered on a combination of innovative product offerings, market share gains, and entry into new markets,” continued Mr. McCormick.

“In material handling, we’ve continued to see our quotation log for larger projects increase over the past couple of quarters, and we expect that to continue in 2015. We expect our radio business to grow not only from material handling applications, but also from share gains in other markets such as fluid power. We’re targeting increases in our share of energy-saving controls for the elevator market, and in the mining area, we continue to invest to reduce our dependence on the coal industry and expand geographically, but those efforts are typically longer-term in nature. In summary, we continue to believe that we have great opportunities to continue to increase the value of the Company through a combination of organic sales growth, reliable and consistent profitability and cash flow, and additional reductions in our pension obligation,” concluded Mr. McCormick.

For earnings history and earnings-related data on Magnetek (MAG) click here.

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