Metals coating company AZZ is expected to show improvement in both revenue and earnings in Q3 FY 2021 compared to the second quarter, which ended on August 31, 2020.
Operational efficiencies across all AZZ plants are expected to manage direct costs and increase employee safety as a result of digital galvanizing systems (DGS).
Tom Ferguson, president, and chief executive officer of AZZ said that he expects modest improvements in the short- to medium-term and the company is positioning operations for a potentially strong fiscal next year. The welding solutions business is showing signs of improvement with earlier and stronger quoting activity.
Ferguson added that the firm’s focus will remain on restructuring its portfolio, streamlining operational efficiencies, improving margins, and supporting organic growth.
In the last quarter, the company said in its earnings report on Oct 13, the Infrastructure Solutions segment encountered a more adverse effect due to customer delays for maintenance and lower order volume for electrical lines.
In Q2 FY 2021, AZZ’s consolidated sales stood at $203.4mn, dropping 13.9pc from the same quarter last year, while its net income was reported at $13mn, excluding one-time pre-tax restructuring charges of $18.7mn.
The company’s Metal Coatings segment’s sales declined by 6.3pc to $117mn from the same quarter last year and the Infrastructure Solutions segment sales fell by 22.5pc to $86.3mn during the same period.
Adjusted operating margins remained flat at 23pc of net sales in Q2 2021. Year-to-date adjusted operating income declined by 10.4pc to $52 million compared to the same period last year.
AZZ is a US-based provider of metal coatings, welding solutions, specialty electrical equipment, and highly engineered services.