Menomonee Falls-based Actuant Corp. is planning to record a net impairment charge of approximately $170 million in its second quarter because of weakness in the global oil and gas and off-highway equipment markets.
The non-cash charge was not included in any previously provided guidance and will amount to a charge of $2.86 per diluted share.
The company also indicated it would report revenue of approximately $263 million. The figure represents a roughly 12 percent drop from the same period last year and is below the company’s guidance of $270 million to $280 million.
In a release, Actuant said sales were negatively impacted by greater than expected declines across a number of end markets, including energy, general industrial and off-highway as customers reduce inventory through production cuts in excess of demand declines.
Actuant is reevaluating its full year guidance and will provide updated expectations and commentary with its second quarter earnings release on March 18.
The company also announced it had completed the acquisition of Larzep S.A. The Spanish-based company has approximately $7 million in annual sales and provides hydraulic tools, pumps and accessories for maintenance, repair and operations applications in Europe.
Former Joy Global chief operating officer Randal W. Baker was named Actuant’s president and chief executive officer last week. The company has struggled in recent quarters as the strong dollar and weak end markets have impacted earnings. It recorded $4.4 million in charges during the first quarter as part of an ongoing $25 million restructuring program.
