L.B. Foster Q4 Results Top Expectations
L.B. Foster, a manufacturer of products and services for the rail, construction, energy and utility markets, on Tuesday reported Q4 adjusted earnings and revenue above analysts’ expectations as sales growth in its tubular and rail segments outweighed a revenue decline in the construction segment.
Net income slipped to $6.0 million, or $0.58 per diluted share, from $7.3 million, or $0.71 per diluted share, a year earlier. The latest quarter included a $4.8 million pretax warranty charge related to concrete railroad ties.
However, when excluding one-time items, the company’s earnings rose to $0.85 per diluted share from the year-earlier period’s $0.71 per share, well above the $0.63 per share expected on average by three analysts polled by Capital IQ.
Net sales rose to $161.1 million from $156.5 million a year earlier, topping four analysts’ mean estimate of $154.7 million. The growth was driven by a 13% increase in tubular segment sales and a 6.6% improvement in rail segment sales, partially offset by a 3.5% decrease in the construction segment. Gross profit margin was 19.6%, unchanged from the prior-year quarter.
“In 2015, our attention will turn to taking advantage of the opportunities provided by the recent acquisitions along with strengthening the company’s business systems to support the anticipated growth,” said CEO Robert P. Bauer.