AZZ Inc., a global provider of metal coating services, welding solutions, specialty electrical equipment and highly engineered services, today announced financial results for the three-month period ended August 31, 2017.
Revenues for the second quarter of fiscal 2018 were $190.4 million compared to $195.0 million for the same quarter last year, a decrease of 2.4 percent. Net income for the second quarter decreased 16.9 percent to $8.3 million, compared to net income of $10.0 million for the second quarter of fiscal 2017.
Revenues for the Metal Coatings Segment for the second quarter were $99.0 million, an increase of 1.6 percent, compared to the $97.4 million in the same period last year. Operating income increased 55.7 percent to $23.4 million compared to $15.0 million in the prior period, as result of the $7.3 million in charges taken by the segment in the second quarter of fiscal 2017. As a result, operating margins for the second quarter increased to 23.6 percent, compared to 15.4 percent in the same period last year.
Revenues for the Energy Segment for the second quarter of fiscal 2018 were $91.4 million as compared to $97.6 million for the same quarter last year, a decrease of 6.4 percent. Operating income for the segment fell to $0.0 million compared to $8.2 million in the same period last year. Operating margins for the second quarter fell to 0.0 percent as compared to 8.4 percent in the prior year period. This was a direct result of product mix from lower revenues and higher operating costs in certain operations.
Tom Ferguson, president and chief executive officer of AZZ Inc., commented, "Historically, the second quarter is a slower period for our Industrial platform, but operational performance was further impacted by the delay of a couple of large projects that moved into the first half of fiscal 2019. Finally, Hurricane Harvey caused us to shut down three galvanizing facilities as well as our industrial lighting business during the quarter."
Ferguson continued, "Despite the current market conditions, we are cautiously optimistic that our Metal Coatings Segment is gaining traction on its organic growth initiatives and will be able to leverage the recent acquisition of Enhanced Powder Coatings, Ltd., in addition to the opening of a new powder coating facility in Crowley, Texas. We are gaining confidence in our outlook for fiscal 2019 as we see improving market activity in infrastructure spending, solar energy and refinery turnaround activity. Additionally, we should experience improved operational performance with our realigned sales team along with our recent acquisition of Powergrid Solutions, Inc. As announced last week, we adjusted our fiscal year 2018 guidance with earnings per share to be in the range of $1.80 to $2.30 per diluted share and annual sales to be in the range of $825 million to $885 million."