AZZ Inc., a global provider of metal coatings services, welding solutions, specialty electrical equipment and highly engineered services, today announced financial results for the three month period ended May 31, 2017.
Revenues for the first quarter of fiscal year 2018 were $208.6 million compared to $242.7 million for the same quarter last year, a decrease of 14.1 percent. Net income for the first quarter decreased 37.1 percent to $13.2 million, or $0.51 per diluted share, compared to net income of $21.1 million, or $0.81 per diluted share, for the first quarter of fiscal year 2017.
Revenues for the Metal Coatings segment for the first quarter of fiscal year 2018 were $92.1 million, compared to the $104.6 million for the same period of last year, a decrease of 11.9 percent. Operating income was $21.2 million as compared to $24.3 million in the prior period. As a result, operating margins for the first quarter of fiscal year 2018 decreased slightly to 23.1 percent, compared to 23.2 percent in the same period last year.
Tom Ferguson, president and chief executive officer of AZZ Inc., commented, "Although the Metal Coatings segment revenue was down versus the first quarter of last year, on a sequential basis, it was up 12.8 percent compared to last quarter of fiscal year 2017 and performed as expected. There are still headwinds in the galvanizing market, however, I continue to believe that the second half of the fiscal year will strengthen as infrastructure spend improves. Our Metal Coatings segment is well positioned for new revenue streams with our new powder coating facility in Crowley Texas that is now open and the recent acquisition of Enhanced Powder Coating. In addition, our new operation for AZZ's GalvaBar corrosion resistant galvanized rebar is now open for business. We expect all of these businesses to be important contributors in the coming years, and we have changed the name of the Galvanizing segment to the Metal Coatings segment to reflect the impact and importance of our expanded metal coating product offerings."