Altra Industrial Motion Q1 Profit Falls 6.4%, Maintains Full Year Outlook

Altra Industrial Motion Corp AIMC said its net income fell 6.4 percent to $8.8 million in the first quarter from $9.4 million in the corresponding period last year. Similarly, its earnings also dipped 5.6 percent to $0.34 a share from $0.36 a share.

On an adjusted basis, Altra Industrial Motion reported net income of $9.9 million, which was also 11.05 percent down from $11.12 million in the year-ago quarter. On a per share basis, it fell 9.5 percent to $0.38 from $0.42 and came in $0.05 a share more than the Street analysts' expectations of $0.33 a share.

The company's net sales fell 6.7 percent to $180.5 million from $193.4 million in the previous year quarter. The company blamed the drop in sales to an unfavorable impact from the Greenback of 1.8 percent and an organic sales fall of 4.9 percent. However, it was above the Street predictions of $175.58 million.

Altra's Chairman and CEO, Carl Christenson, said "We are on plan with our strategic actions to improve Altra's long-term operating performance amid the current soft economic environment for many of our end markets. We are seeing the positive benefits of our operational excellence and business simplification initiatives, although these gains were offset in the quarter by the 7% lower sales volume as well as an unfavorable product mix."

He added, "We are on track to have completed six consolidations by the end of the current second quarter, and we anticipate announcing a seventh planned consolidation during the third quarter. In addition, our supply chain management initiative is progressing well. Finally, we continued our balanced capital allocation as we repurchased $2.2 million of Altra shares."

Going forward, Altra said that it was maintaining its earlier annual revenue forecast of $700 to $720 million and non-GAAP EPS outlook of $1.40 to $1.50 for the full year. Street analysts expect the company to deliver earnings of $1.45 a share on revenue of $706.48 million.