Adjusted operating income of $47M, compared with $53M a year ago. Adjusted EPS of $0.44 per share vs. $0.44 per share in the prior year quarter.
Revenue by segment: Industrial -8; Infrastructure -31%.
"As we look to fiscal year 2017... even without a modest upturn in our end markets, we believe our improving cost position in combination with a more robust and proactive commercial strategy will produce improved margins," CEO Ron De Feo declared.
The company also announced a workforce reduction initiative with expected costs of $80-$95M. It should reduce employment by 1,000, resulting in an annual run rate savings of $100-$110M by fiscal year-end 2017.
Investors should take profits on machinery stocks ahead of earnings, J.P. Morgan analysts say, as valuations are stretched after the sector outperformed the S&P in Q1 +17% vs. +1.3%, and investors likely will have little tolerance for weaker than expected performance.
The firm suggests avoiding Deere (DE +1.9%), Agco (AGCO +3.5%) and CNH Industrial (CNHI +3%) on weaker fundamentals with downside risk to the market outlooks for each region, and Paccar (PCAR +2.9%) on weaker NAFTA HD truck demand vs. its guide for a 12% decline in U.S. and Canada retail sales.
However, JPM likes Allison Transmission (ALSN +2.4%) heading into Q1 as it has underperformed peers while its exposure to HD Class 8 long haul is limited and MD orders are up 5% YTD.
Adjusted operating income of $17M, compared with $61M a year ago. Adjusted EPS of $0.14 per share vs. $0.56 per share in the prior year quarter.
Revenue by segment: Industrial -16; Infrastructure -30%.
Completed the sale of several non-core businesses related to certain castings, steel-plate fabrication and deburring for an aggregate price of approximately $70M prior to working capital adjustments.
Due to the further deterioration of end markets, the company expects fiscal 2016 total sales to decline in the range of 20%-23%. Consistent with the change of expectations in December, the firm has reduced EPS approximately 40% at the midpoint to $0.85-$1.05 for the full fiscal year.