EnPro Industries (NYSE: NPO) reported Q1 EPS of $0.62, $0.22 better than the analyst estimate of $0.40. Revenue for the quarter came in at $282.7 million versus the consensus estimate of $295.6 million.

First Quarter 2020 Highlights

(All results reflect comparisons to prior-year period and Fairbanks Morse as a discontinued operation unless otherwise noted)

• Sales decreased 6.7% to $282.7 million
• Segment profit increased 7.8% to $29.1 million
• Income from continuing operations attributable to EnPro Industries, Inc. increased 29.5% to $10.1 million
• Adjusted EBITDA increased 19.4% to $40.6 million
• Diluted earnings per share attributable to EnPro Industries, Inc. continuing operations increased 32.4% to $0.49
• Adjusted diluted earnings per share increased 37.8% to $0.62
• The divestiture of Fairbanks Morse closed on January 21, 2020
• Withdrawing 2020 guidance due to macroeconomic uncertainty surrounding the COVID-19 pandemic

“At EnPro, our number one priority of protecting the health and safety of our 5,000+ global employees and their families, as well as of our communities, customers, and suppliers, remains unchanged. While I am very pleased with our results for the quarter, I am even more proud of our colleagues who continue to live out our core values of Safety, Excellence, and Respect during these rapidly changing times. Our teams have taken the necessary steps to keep our people and facilities safe while maintaining operations to provide a high level of service to our customers during this challenging time. I am happy to report that, as of today, 100% of our primary manufacturing facilities are currently operating and we have not experienced significant supply chain disruptions thanks to the tireless efforts of our supply chain team,” said Marvin Riley, Chief Executive Officer.

“The closing of the divestiture of Fairbanks Morse on January 21st strengthened our balance sheet. The proceeds from that transaction and availability under our revolving credit facility provide ample liquidity and capital resources to weather the evolving economic crisis. We are confident that we will emerge from this unprecedented period with the financial flexibility to take advantage of opportunities that will likely arise. We are committed to maintaining our strong balance sheet and leveraging the EnPro Operating System for cost savings and continuous improvement,” added Mr. Riley.

“During the quarter, our end markets saw varied demand changes as a result of the economic impacts of the COVID-19 pandemic. Consolidated adjusted EBITDA margin increased approximately 320 basis points to 14.4% compared to a year ago, despite challenging demand conditions within heavy-duty truck, general industrial, automotive, and petrochemical markets,” added Mr. Riley.

Strategy and Key Developments

“The divestiture of Fairbanks Morse was a further step in the implementation of our long-term strategy. While our strategy remains unchanged, we are currently prioritizing efforts that are focused on weathering this storm and emerging as a stronger company. As we have more clarity on the severity and duration of the current crisis, we will shift our priorities back to our long-term strategy of reshaping our portfolio towards businesses with compelling margins, leading technology, and high cash flow return on investment in markets with favorable secular tailwinds; maintaining a balanced approach to capital allocation; increasing aftermarket exposure and recurring revenue opportunities; and leveraging the EnPro Operating System for continuous improvement to increase margins and cash flow return on investment,” said Mr. Riley.

For earnings history and earnings-related data on EnPro Industries (NPO) click here.