OREANDA-NEWS. Altra Industrial Motion Corp., a global manufacturer and marketer of electromechanical power transmission and motion control products, today announced unaudited financial results for the second quarter ended June 30, 2016.

Financial Highlights

  • Second-quarter 2016 net sales were $182.7 million, compared with $196.6 million in the second quarter of 2015, a decrease of 7.1%. The reduction in net sales was driven by an unfavorable impact from foreign exchange of 1.0% and an organic sales decline of 6.1%.
  • Second-quarter net income was $9.3 million, or $0.36 per diluted share, compared with $9.6 million, or $0.37 per diluted share, in the second quarter of 2015. Non-GAAP net income in the second quarter of 2016 was $10.9 million, or non-GAAP diluted earnings per share of $0.42, compared with $11.5 million, or non-GAAP diluted earnings per share of $0.43, a year ago.*
  • Strong cash flow from operations of $30.5 million led to free cash flow of $19.7 million for the first six months.*
  • The Company returned to shareholders $2.2 million by repurchasing approximately 80,190 shares during the second quarter under its $50 million repurchase program. Since the program's inception in May 2014, the Company has purchased approximately $39.3 million, or 1.4 million shares, under the program.

Business Outlook

"We had been hopeful to see the beginnings of a recovery in the back half of this year. While comparisons with prior-year quarters will be easier, we do not see imminent catalysts that would result in improvements to our most out-of-favor end markets. At the same time, based on our solid first-half performance and near term outlook, we are maintaining our top-and-bottom-line guidance for the full year. Looking forward, we are encouraged by the benefits we already are experiencing from our consolidation, supply chain and operational excellence initiatives and expect these aggressive actions to result in significant long-term operating performance improvement."

Altra is maintaining its previous annual revenue guidance and expects full-year 2016 sales in the range of $700 to $720 million and diluted EPS in the range of $1.20 to $1.30 and non-GAAP diluted EPS guidance in the range of $1.40 to $1.50.* This guidance includes savings from the restructuring and consolidation actions taken to date. The Company expects its tax rate for the full year to be approximately 29% to 31%. Altra continues to expect capital expenditures in the range of $20 to $24 million and depreciation and amortization in the range of $30 to $32 million for 2016.

Altra Industrial Motion Corp., through its subsidiaries, is a leading global designer, producer and marketer of a wide range of electromechanical power transmission products. The Company brings together strong brands covering over 40 product lines with production facilities in 12 countries. Altra's leading brands include Ameridrives Couplings, Bauer Gear Motor, Bibby Turboflex, Boston Gear, Delroyd Worm Gear, Formsprag Clutch, Guardian Couplings, Huco, Industrial Clutch, Inertia Dynamics, Kilian Manufacturing, Lamiflex Couplings, Marland Clutch, Matrix, Nuttall Gear, Stieber Clutch, Svendborg Brakes, TB Wood's, Twiflex, Warner Electric, Warner Linear, and Wichita Clutch