PRESS RELEASE
Published on November 4, 2009
Exhibit
99.1
|
News
Release
|
JBT
Corporation
|
|
|
|
200
E. Randolph Drive
|
|
|
Chicago,
IL 60601
|
For Release:
Immediate
|
Investors:
|
Cindy
Shiao
|
(312)
861-5931
|
|
Media:
|
Ken
Jones
|
(312)
861-6791
|
JBT
Corporation Reports Third Quarter 2009 Results
Highlights:
|
|
o
|
Inbound
orders of $202 million and backlog of $272 million both increased
sequentially from second quarter
2009
|
|
|
o
|
Revenue of
$196 million down 23% from third quarter
2008
|
|
|
o
|
Gross
profit margin of 27.5 percent increased from the prior-year
quarter
|
|
|
o
|
Diluted
earnings per share from continuing operations of
$0.29
|
|
|
o
|
Net debt at
$132.8 million unchanged from second quarter
2009
|
|
|
o
|
Outlook for
full-year diluted earnings per share from continuing operations narrowed
to $1.07 - $1.15
|
CHICAGO, November 3, 2009—JBT Corporation (NYSE: JBT), a leading global
technology solutions provider to the food processing and air transportation
industries, today reported third quarter 2009 results.
Third
quarter inbound orders of $202.1 million and backlog of $272.0 million increased
sequentially from the second quarter of 2009. Total revenue of $196.4
million for the quarter declined 23 percent from the third quarter of
2008. Third quarter gross profit margin of 27.5 percent included
foreign exchange gains of $4.0 million primarily related to JBT FoodTech’s
operations. Segment operating profit was $15.9 million, down 35
percent from the year-ago period. During the quarter, the company
incurred $0.4 million of restructuring charges in response to continued
challenges facing some of JBT AeroTech’s product lines. Diluted
earnings per share from continuing operations for the quarter were $0.29, flat
compared to pro forma diluted earnings per share reported in third quarter of
2008 (calculated on a pro forma basis to include comparable debt and interest
expense) and were down 6 percent from the GAAP diluted earnings per share of
$0.31 for the same period. Debt, net of cash, was $132.8 million
unchanged from second quarter of 2009.
“We are
pleased with our third quarter results,” said Charlie Cannon, Chairman and Chief
Executive Officer. “As expected, the quarter reflected the normal
seasonal pattern of JBT FoodTech and continued weak demand in the ground support
equipment product line of the JBT AeroTech segment. We are seeing
increased activity in many of our markets, but projects are smaller and take
longer to finalize than what we experienced in pre-recession
periods. As a result of our year-to-date performance and increased
market activity, we are raising the lower end of our 2009 earnings per share
guidance range.”
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JBT
FoodTech
JBT
FoodTech’s third quarter revenue of $114.0 million declined 20 percent versus
the same period last year. In constant currencies, revenue was down
16 percent due to continued weakness in Western Europe and Latin America,
reflecting lower order activity since the onset of the financial crisis in the
latter part of 2008. JBT FoodTech’s operating profit was $10.4
million. Operating margin was 9.1 percent, largely unchanged from the
same period last year. Inbound orders totaled $129.8 million for the
quarter, a decline of 6 percent from the same period a year ago and essentially
flat in constant currencies. Inbound orders were 14 percent higher
sequentially versus the second quarter of 2009, reflecting a slight improvement
in Europe and the Middle East and continued strength in Asia
Pacific. Backlog of $141.2 million was down 6 percent from the
prior-year quarter and up 13 percent sequentially from the second quarter
2009.
JBT
AeroTech
JBT
AeroTech’s third quarter revenue of $78.6 million decreased 32 percent from the
same period in 2008, reflecting the continued severe downturn in the airline and
airfreight industries which has had the most significant impact in demand for
JBT AeroTech’s ground support equipment product line. JBT AeroTech’s
operating profit of $5.5 million for the quarter declined 52 percent compared to
the year-ago period primarily due to the impact of lower
revenue. Lower expenses from cost reduction initiatives and improved
margin from favorable product mix partially offset the profit
decline. Excluding restructuring charges of $0.4 million incurred in
the quarter, operating margin of 7.5 percent declined 250 basis points from the
third quarter of 2008. Inbound orders totaled $72.6 million, down 26
percent from the same period last year. However, inbound orders
increased 6 percent sequentially from the second quarter 2009, reflecting a
slight pickup in order activity for the ground support equipment product
line. Backlog of $136.6 million was down 20 percent from the
prior-year quarter and down 4 percent sequentially.
Corporate
Items
Corporate
expense in the quarter was $4.0 million, down $0.2 million from the third
quarter of 2008.
Other
income, net of $2.8 million was $8.6 million favorable versus the prior-year
quarter due primarily to favorable foreign exchange impacts. The
company hedges its foreign exchange transactions and has elected not to apply
hedge accounting for a majority of its foreign currency exposures. As
a result, mark-to-market gains or losses from currency fluctuations are
recognized in earnings each period. During the current quarter, the
company recorded $4.0 million in mark-to-market gains primarily related to JBT
FoodTech operations due to the recent weakening of the U.S.
dollar. In the third quarter of 2008, the company incurred foreign
exchange losses of $3.1 million associated with the spin-off from FMC
Technologies and a $1.4 million mark-to-market loss again primarily related to
JBT FoodTech due to the significant strengthening of the U.S. dollar in the
third quarter of 2008.
Cash
generated from operating activities in the quarter was $5.3 million after the
company funded a $12.0 million contribution to its U.S. pension
plans. In September, the company announced it was freezing its U.S.
defined benefit plan for non-union employees as of December 31,
2009. The company ended the quarter with debt, net of cash, of $132.8
million, unchanged from the second quarter of 2009. Net interest
expense was $2.1 million in the third quarter of 2009.
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The
year-to-date effective tax rate from continuing operations was 33.9 percent,
reflecting a slight decline from the rate reported at the end of the second
quarter of 2009.
Year-to-date
capital expenditures totaled $14.5 million and depreciation and amortization
totaled $16.5 million.
2009
Outlook
The
company is updating its full-year 2009 earnings guidance from $0.95 - $1.15 to
$1.07 - $1.15 per share reflecting favorable year-to-date performance and modest
improvement in JBT FoodTech’s European markets.
Third
Quarter Earnings Conference Call
The
company will hold a conference call at 9:00 AM EST Wednesday, November 4, 2009,
to discuss the third quarter 2009 results. The call can be accessed
live by dialing (877) 235-3250 or (706) 643-5005 and using conference ID
31475346, or through the Investor Relations link on JBT Corporation’s website at
http://ir.jbtcorporation.com. A
replay of the call will be available through November 11, 2009 and can be
accessed by dialing (800) 642-1687 or (706) 645-9291 and
referencing passcode 31475346. A rebroadcast also will available
on the company’s Investor Relations website.
###
JBT
Corporation (NYSE: JBT) is a leading global technology solutions provider to the
food processing and air transportation industries. JBT Corporation
designs, manufactures, tests and services technologically sophisticated systems
and products for regional and multi-national industrial food processing
customers through its JBT FoodTech segment and for domestic and international
air transportation customers through its JBT AeroTech segment. JBT
Corporation employs approximately 3,300 people worldwide and operates sales,
service, manufacturing and sourcing operations located in over 25
countries. For more information, please visit www.jbtcorporation.com.
This
release contains forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are
information of a non-historical nature and are subject to risks and
uncertainties that are beyond the Company’s ability to control. These
risks and uncertainties are described under the caption “Risk Factors” in the
Company’s 2008 Annual Report on Form 10-K filed by the Company with the
Securities and Exchange Commission that may be accessed on the Company’s
website. The Company cautions shareholders and prospective investors
that actual results may differ materially from those indicated by the
forward-looking statements.
FINANCIAL
TABLES FOLLOW
MORE
JBT
CORPORATION
CONDENSED CONSOLIDATED AND
COMBINED STATEMENTS OF INCOME
(Unaudited
and in millions)
|
Three
Months Ended September 30,
|
||||||||||||
|
2009
|
2008
|
|||||||||||
|
Historical
|
Pro
Forma (1)
|
|||||||||||
|
Revenue
|
$ | 196.4 | $ | 256.6 | $ | 256.6 | ||||||
|
Costs
and expenses:
|
||||||||||||
|
Costs
of sales
|
142.4 | 195.2 | 195.2 | |||||||||
|
Selling,
general and administrative expense
|
36.4 | 37.8 | 37.8 | |||||||||
|
Research
and development expense
|
3.9 | 5.0 | 5.0 | |||||||||
|
Total
costs and expenses
|
182.7 | 238.0 | 238.0 | |||||||||
|
Other
income (expense), net
|
1.0 | (4.0 | ) | (4.0 | ) | |||||||
|
Net
interest expense
|
(2.1 | ) | (1.5 | ) | (2.4 | ) | ||||||
|
Income
from continuing operations before income taxes
|
12.6 | 13.1 | 12.2 | |||||||||
|
Provision
for income taxes
|
4.2 | 4.3 | 4.0 | |||||||||
|
Income
from continuing operations
|
8.4 | 8.8 | 8.2 | |||||||||
|
Loss
from discontinued operations, net of taxes
|
(0.1 | ) | - | - | ||||||||
|
Net
income
|
$ | 8.3 | $ | 8.8 | $ | 8.2 | ||||||
|
Basic
earnings per share:
|
||||||||||||
|
Income
from continuing operations
|
$ | 0.30 | $ | 0.32 | $ | 0.30 | ||||||
|
Income
from discontinued operations
|
- | - | - | |||||||||
|
Basic
earnings per share
|
$ | 0.30 | $ | 0.32 | $ | 0.30 | ||||||
|
Diluted
earnings per share:
|
||||||||||||
|
Income
from continuing operations
|
$ | 0.29 | $ | 0.31 | $ | 0.29 | ||||||
|
Income
from discontinued operations
|
- | - | - | |||||||||
|
Diluted
earnings per share
|
$ | 0.29 | $ | 0.31 | $ | 0.29 | ||||||
|
Weighted
average shares outstanding
|
||||||||||||
|
Basic
|
27.7 | 27.5 | 27.5 | |||||||||
|
Diluted
|
28.7 | 28.1 | 28.1 | |||||||||
|
(1)
|
In
connection with the separation from FMC Technologies, JBT Corporation paid
FMC Technologies $189.4 million, which was funded through issuance of
unsecured debt. Pro forma results include an estimate of interest expense
that JBT Corporation would have incurred had the spin-off occurred on
January 1, 2008. Interest expense is based on $189.4 million of debt at
the interest rate applicable on July 31, 2008, or 5.8%, for all periods
prior to the separation date. Related income tax impact has been estimated
using a rate of 37%.
|
||||||
JBT
CORPORATION
CONDENSED CONSOLIDATED AND
COMBINED STATEMENTS OF INCOME
(Unaudited
and in millions)
|
Nine
Months Ended September 30,
|
||||||||||||
|
2009
|
2008
|
|||||||||||
|
Historical
|
Pro
Forma (1)
|
|||||||||||
|
Revenue
|
$ | 595.6 | $ | 793.6 | $ | 793.6 | ||||||
|
Costs
and expenses:
|
||||||||||||
|
Costs
of sales
|
435.7 | 602.6 | 602.6 | |||||||||
|
Selling,
general and administrative expense
|
109.2 | 118.0 | 118.0 | |||||||||
|
Research
and development expense
|
12.4 | 16.8 | 16.8 | |||||||||
|
Total
costs and expenses
|
557.3 | 737.4 | 737.4 | |||||||||
|
Other
income (expense), net
|
1.9 | (3.0 | ) | (3.0 | ) | |||||||
|
Net
interest expense
|
(6.6 | ) | (1.2 | ) | (7.6 | ) | ||||||
|
Income
from continuing operations before income taxes
|
33.6 | 52.0 | 45.6 | |||||||||
|
Provision
for income taxes
|
11.4 | 18.2 | 15.8 | |||||||||
|
Income
from continuing operations
|
22.2 | 33.8 | 29.8 | |||||||||
|
(Loss)
income from discontinued operations, net of taxes
|
(0.1 | ) | 0.3 | 0.3 | ||||||||
|
Net
income
|
$ | 22.1 | $ | 34.1 | $ | 30.1 | ||||||
|
Basic
earnings per share:
|
||||||||||||
|
Income
from continuing operations
|
$ | 0.80 | $ | 1.23 | $ | 1.08 | ||||||
|
Income
from discontinued operations
|
- | 0.01 | 0.01 | |||||||||
|
Basic
earnings per share
|
$ | 0.80 | $ | 1.24 | $ | 1.09 | ||||||
|
Diluted
earnings per share:
|
||||||||||||
|
Income
from continuing operations
|
$ | 0.78 | $ | 1.22 | $ | 1.08 | ||||||
|
Income
from discontinued operations
|
- | 0.01 | 0.01 | |||||||||
|
Diluted
earnings per share
|
$ | 0.78 | $ | 1.23 | $ | 1.09 | ||||||
|
Weighted
average shares outstanding
|
||||||||||||
|
Basic
|
27.6 | 27.5 | 27.5 | |||||||||
|
Diluted
|
28.5 | 27.7 | 27.7 | |||||||||
|
(1)
|
In
connection with the separation from FMC Technologies, JBT Corporation paid
FMC Technologies $189.4 million, which was funded through issuance of
unsecured debt. Pro forma results include an estimate of interest expense
that JBT Corporation would have incurred had the spin-off occurred on
January 1, 2008. Interest expense is based on $189.4 million of debt at
the interest rate applicable on July 31, 2008, or 5.8%, for all periods
prior to the separation date. Related income tax impact has been estimated
using a rate of 37%.
|
||||||
JBT
CORPORATION
BUSINESS SEGMENT
DATA
(Unaudited
and in millions)
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
|
September
30,
|
September
30,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Revenue
|
||||||||||||||||
|
JBT
FoodTech
|
$ | 114.0 | $ | 142.8 | $ | 354.4 | $ | 451.1 | ||||||||
|
JBT
AeroTech
|
78.6 | 115.2 | 235.9 | 343.9 | ||||||||||||
|
Other
revenue (1) and intercompany eliminations
|
3.8 | (1.4 | ) | 5.3 | (1.4 | ) | ||||||||||
|
Total
revenue
|
$ | 196.4 | $ | 256.6 | $ | 595.6 | $ | 793.6 | ||||||||
|
Income before income taxes
|
||||||||||||||||
|
Segment operating profit
|
||||||||||||||||
|
JBT
FoodTech
|
$ | 10.4 | $ | 13.1 | $ | 34.7 | $ | 41.8 | ||||||||
|
JBT
AeroTech
|
5.5 | 11.5 | 17.0 | 31.2 | ||||||||||||
|
Total
segment operating profit
|
15.9 | 24.6 | 51.7 | 73.0 | ||||||||||||
|
Corporate items
|
||||||||||||||||
|
Corporate
expense
|
(4.0 | ) | (4.2 | ) | (11.0 | ) | (10.0 | ) | ||||||||
|
Other
income (expense), net (2)
|
2.8 | (5.8 | ) | (0.5 | ) | (9.8 | ) | |||||||||
|
Net
interest (expense) income
|
(2.1 | ) | (1.5 | ) | (6.6 | ) | (1.2 | ) | ||||||||
|
Total
corporate items
|
(3.3 | ) | (11.5 | ) | (18.1 | ) | (21.0 | ) | ||||||||
|
Income
from continuing operations before income taxes
|
$ | 12.6 | $ | 13.1 | $ | 33.6 | $ | 52.0 | ||||||||
|
(1)
Other revenue comprises certain gains and losses on derivatives related to
foreign exchange exposure.
|
|||||||||
|
(2)
Other income (expense), net, generally includes stock-based compensation,
other employee benefits, LIFO adjustments, foreign exchange gains and
losses, and the impact of unusual or strategic transactions not
representative of segment
operations.
|
|||||||||
JBT
CORPORATION
BUSINESS SEGMENT
DATA
(Unaudited
and in millions)
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
|
September
30,
|
September
30,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Inbound Orders
|
||||||||||||||||
|
JBT
FoodTech
|
$ | 129.8 | $ | 138.5 | $ | 342.8 | $ | 434.4 | ||||||||
|
JBT
AeroTech
|
72.6 | 98.5 | 229.9 | 284.1 | ||||||||||||
|
Intercompany
eliminations
|
(0.3 | ) | (1.0 | ) | (0.4 | ) | (3.1 | ) | ||||||||
|
Total
inbound orders
|
$ | 202.1 | $ | 236.0 | $ | 572.3 | $ | 715.4 | ||||||||
|
September
30,
|
||||||||||||||||
| 2009 | 2008 | |||||||||||||||
|
Order Backlog
|
||||||||||||||||
|
JBT
FoodTech
|
$ | 141.2 | $ | 150.7 | ||||||||||||
|
JBT
AeroTech
|
136.6 | 170.9 | ||||||||||||||
|
Intercompany
eliminations
|
(5.8 | ) | (1.4 | ) | ||||||||||||
|
Total
order backlog
|
$ | 272.0 | $ | 320.2 | ||||||||||||
JBT
CORPORATION
CONDENSED CONSOLIDATED
BALANCE SHEETS
(In
millions)
|
September
30,
|
December
31,
|
|||||||
|
2009
|
2008
|
|||||||
|
(Unaudited)
|
||||||||
|
Cash
and cash equivalents
|
$ | 12.7 | $ | 43.6 | ||||
|
Trade
receivables, net
|
121.5 | 159.0 | ||||||
|
Inventories
|
143.4 | 123.0 | ||||||
|
Other
current assets
|
38.5 | 31.4 | ||||||
|
Total
current assets
|
316.1 | 357.0 | ||||||
|
Property,
plant and equipment, net
|
126.7 | 119.7 | ||||||
|
Other
assets
|
108.5 | 114.6 | ||||||
|
Total
assets
|
$ | 551.3 | $ | 591.3 | ||||
|
Accounts
payable, trade and other
|
$ | 64.8 | $ | 67.2 | ||||
|
Advance
payments and progress billings
|
83.4 | 92.9 | ||||||
|
Other
current liabilities
|
92.4 | 104.3 | ||||||
|
Total
current liabilities
|
240.6 | 264.4 | ||||||
|
Long-term
debt, less current portion
|
145.0 | 185.0 | ||||||
|
Accrued
pension and other postretirement benefits,
|
||||||||
|
less
current portion
|
83.3 | 118.3 | ||||||
|
Other
liabilities
|
36.8 | 32.4 | ||||||
|
Common
stock, paid-in capital and retained earnings
|
86.8 | 61.6 | ||||||
|
Accumulated
other comprehensive loss
|
(41.2 | ) | (70.4 | ) | ||||
|
Total
liabilities and stockholders' equity
|
$ | 551.3 | $ | 591.3 | ||||
JBT
CORPORATION
CONDENSED CONSOLIDATED AND
COMBINED STATEMENTS OF CASH FLOWS
(Unaudited
and in millions)
|
Nine
Months Ended
|
||||||||
|
September
30,
|
||||||||
|
2009
|
2008
|
|||||||
|
Cash
Flows From Operating Activities:
|
||||||||
|
Income
from continuing operations
|
$ | 22.2 | $ | 33.8 | ||||
|
Adjustments
to reconcile income to cash provided by operating
activities:
|
||||||||
|
Depreciation
and amortization
|
16.5 | 19.5 | ||||||
|
Other
|
7.4 | 6.4 | ||||||
|
Changes
in operating assets and liabilities:
|
||||||||
|
Trade
accounts receivable, net
|
40.1 | 12.4 | ||||||
|
Inventories
|
(12.0 | ) | 5.3 | |||||
|
Accounts
payable, trade and other
|
(4.9 | ) | (22.9 | ) | ||||
|
Advance
payments and progress billings
|
(10.2 | ) | 7.9 | |||||
|
Pension
and other post retirement benefits, net
|
(12.1 | ) | 2.0 | |||||
|
Other
|
(13.8 | ) | 5.7 | |||||
|
Cash
provided by continuing operating activities
|
33.2 | 70.1 | ||||||
|
Net
cash required by discontinued operating activities
|
- | (0.1 | ) | |||||
|
Cash
Flows From Investing Activities:
|
||||||||
|
Acquisitions
|
(6.7 | ) | (4.5 | ) | ||||
|
Capital
expenditures
|
(14.5 | ) | (16.6 | ) | ||||
|
Proceeds
on disposal of assets and other
|
1.2 | 2.4 | ||||||
|
Cash
required by continuing investing activities
|
(20.0 | ) | (18.7 | ) | ||||
|
Cash
provided by discontinued investing activities
|
- | 0.7 | ||||||
|
Cash
Flows From Financing Activities:
|
||||||||
|
Net
(payment) borrowing on credit facilities
|
(40.0 | ) | 139.6 | |||||
|
Distributions
to former parent, net
|
- | (169.2 | ) | |||||
|
Dividends
paid
|
(5.8 | ) | - | |||||
|
Other
|
0.1 | (0.7 | ) | |||||
|
Cash
required by financing activities
|
(45.7 | ) | (30.3 | ) | ||||
|
Effect
of foreign exchange rate changes on cash and cash
equivalents
|
1.6 | (0.1 | ) | |||||
|
(Decrease)
increase in cash and cash equivalents
|
(30.9 | ) | 21.6 | |||||
|
Cash
and cash equivalents, beginning of period
|
43.6 | 9.5 | ||||||
|
Cash
and cash equivalents, end of period
|
$ | 12.7 | $ | 31.1 | ||||