Enpro's thriving sealing segment carries second quarter
EnPro Industries Inc. announced its financial results for the three and six months ended June 30, with essentiall flat sales for the second quarter. Record performance in the sealing sector offset declines in AST.
“Our Sealing Technologies segment achieved another quarter of record performance while our AST segment declined, as expected, due to weakness in the semiconductor market. The year-over-year increase in Sealing roughly offset the decline in the AST segment, demonstrating the balance inherent in our best-in-class portfolio of businesses,” said Eric Vaillancourt, president and CEO. “Our positioning, investments and strong execution capabilities across the company support the many attractive opportunities we see for long-term growth and value creation."
“Strong cash generation enabled us to further reduce our net leverage to 1.5x," he continued. "Our balance sheet provides us with the flexibility to invest in compelling organic growth and productivity opportunities, while prudently considering acquisitions that meet our strategic and financial criteria. As a result of our recent reshaping, we are more resilient, and well-positioned to outperform through economic cycles."
Second Quarter 2023 Highlights
- Sales of $276.9 million essentially flat; organic sales up 0.4%
- Strong sales and earnings performance in Sealing Technologies roughly offset weakness expected in Advanced Surface Technologies
- GAAP loss from continuing operations attributable to EnPro Industries, Inc. of $18.6 million compared to $26.1 million of income last year, reflecting a pre-tax goodwill impairment charge of $60.8 million related to Alluxa
- Adjusted EBITDA* down 11.9% to $64.9 million; adjusted EBITDA margin* down 320 bps to 23.4%; higher share-price-related incentive compensation expense and a currency-related benefit on foreign cash last year combined for a $9 million negative impact year-over-year
- GAAP diluted loss per share from continuing operations attributable to EnPro Industries, Inc. of $0.89, compared to diluted earnings per share of $1.25 last year
- Adjusted diluted earnings per share* from continuing operations attributable to EnPro Industries, Inc. down 10.7% to $1.83 versus $2.05 last year; higher share-price-driven incentive compensation expense and last year's currency-related benefit combined for a pre-tax $9 million negative impact year-over-year
- Full-year revenue expected to be relatively flat year-over-year; adjusted EBITDA* expected to be in the range of $248 million to $256 million, reflecting share-price-driven incentive compensation expense recognized in the second quarter
- Increase adjusted diluted earnings per share* guidance to $6.70 to $7.10, reflecting lower net interest expense versus prior guidance
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