AZZ is likely to post lower revenues in 2021 according to the latest guidance released by the US-based global metals coating and plating company. According to the guidance, AZZ’s revenue for the period of Mar 1, 2020 to Feb 28, 2021 is expected at $970mn-$1.06bn, 5pc lower than its FY2020 guidance.
The company indicated revenue in the range of $1.02-1.06bn for FY2020 based on the actual revenues reported in the first three quarters of the year. It had reported an increase of 10.3pc in revenue to $289.1mn in Q1 2020 compared to the same quarter during the previous financial year, while its Q2 revenues increased by 6pc to $236.2mn. Revenues during the third quarter rose by 21.6pc over the same previous year quarter, reaching $291.1mn from $239.5mn.
It also reported a 14pc increase in its FY2019 net sales to $927mn compared with FY 2018.
Tom Ferguson, AZZ’s president and chief executive officer, said the FY2021 guidance accounts for present market conditions and backlog expectations, however, it excludes potential divestitures and acquisitions. He added that revenue could be challenging because the company anticipates lower backlog for China, and will focus on growth in the metal coatings and energy divisions.
AZZ has grown recently through acquisitions. In September 2019, it purchased all of Preferred Industries’ assets for an undisclosed amount. Preferred provides power and e-coating services to the automotive, HVAC, marine, transportation, medical, industrial, and plastics industries. AZZ now operates eight coating and plating operations in Texas, including NuZinc, which it acquired in August.
AZZ is a global provider of metal coating solutions, welding solutions, specialty electrical equipment and engineered services the power generation, transmission, distribution and industrial markets.