AZZ, Inc. (AZZ) Warns for FY18

AZZ Inc. (NYSE: AZZ) updated revenue and earnings per share guidance for its fiscal year 2018, which ends on February 28, 2018.

Tom Ferguson, president and chief executive officer of AZZ Inc., commented, "Given recent events, we have completed a thorough evaluation of our businesses. We assessed the impact of the recent hurricanes - Harvey and Irma - on our refinery turnaround activity; market conditions in the US nuclear market with the closure of the VC Summer Nuclear Project and the ongoing fallout from the Westinghouse Nuclear bankruptcy; lower than expected electric utility spending in Saudi Arabia; and our current shippable backlog. Based on this evaluation we reduced our full year guidance for fiscal 2018. We now anticipate revenue will be in the range of $825 million to $885 million, compared to the previous guidance of $880 million to $950 million. For full fiscal year 2018, we now anticipate earnings per share will be in the range of $1.80 to $2.30 per fully diluted share, as compared to previous guidance of $2.60 to $3.10 per fully diluted share." (*** consensus is $2.62)

Mr. Ferguson continued, "Looking forward, we believe the refinery turnaround activity is likely to improve early next year, which will positively impact our fiscal year 2019. We also see improving markets for our Metal Coating segment. We have taken appropriate realignment actions to improve our margins and competitiveness in both business segments, while maintaining our ability to handle the growth we see for next year. Additionally, we are pleased with our recent acquisitions of Enhanced Powder Coating, Ltd., ("EPC") and Powergrid Systems, Inc. ("PSI") and the integrations of both these businesses are going smoothly and on schedule, and we have a strong pipeline of acquisitions. While there are clearly market headwinds, we are confident that we have taken the appropriate actions to benefit operational and financial results as market conditions improve. AZZ is a company with a track record of long-term success and we fully expect to continue on that trend for years to come."

AZZ Inc. previously announced that it will report financial results and conduct a conference call for its second quarter of fiscal 2018 on October 3, 2017.

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