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Rexnord Corporation (RXN - Analyst Report), a mechanical components manufacturer, reported weak results for the fourth quarter of fiscal 2013, with adjusted earnings per share of 32 cents, declining 15.8% year over year. However, earnings beat the Zacks Consensus Estimate of 31 cents by a penny.

In fiscal 2013, Rexnord reported adjusted earnings per share of 98 cents, increasing by a penny over the year-ago earnings as well as beating the Zacks Consensus Estimate of 97 cents.

Revenue: Revenue in the reported quarter was flat at $540.3 million, compared with $540.1 million revenue recorded in the year ago quarter. Core sales increased revenue by 1.0% in the quarter, while foreign currency exchange reduced revenue by 1.0%. Revenue missed the Zacks Consensus Estimate of $545.0 million by 0.9%.

On a segmental basis, revenue from Process & Motion Control was recorded at $313.9 million, declining from $324.7 million recorded in the fourth quarter of fiscal 2012. Water Management’s revenue came in at $179.7 million, against $145.0 million in the year-ago comparable quarter.

Revenue for fiscal 2013 amounted to $2,005.1 million, compared with $1,944.2 million in fiscal 2012. The 3.0% increase in revenue was facilitated by a 4.0% increase in the revenue from acquisitions, which was slightly offset by 1.0% decline due to foreign currency exchange. Revenue lagged the Zacks Consensus Estimate of $2,019.0 million by 0.7%.

Costs/Margins: Adjusted EBITDA in the quarter was $115.0 million, against $113.1 million recorded in the year-ago quarter. This led to a 40 basis point increase in the EBITDA margin to 21.3%. Selling, general and administrative expenses, as a percentage of sales, were recorded at 20.1%, declining 70 basis points year over year.

In fiscal 2013, adjusted EBITDA was recorded at $405 million, increasing 5.0% year-over-year, leading to a 40 basis point increase in adjusted EBITDA margin to 20.2%.

Balance Sheet: Exiting the fourth quarter of fiscal 2013, Rexnord’s cash and cash equivalents were recorded at $524.1 million, almost double the $298.0 million recorded in the fiscal fourth quarter 2012. Long-term debt stood at $1,962.3 million, compared with $2,413.4 million recorded in the comparable quarter.

Outlook: Based on the current results, management expects a 1.0%-3.0% increase in the core sales for fiscal 2014. Adjusted EPS is expected to lie in the range of $1.10 to $1.18. For the fiscal first quarter 2014, sales are expected to be in the range of $489.0 million to $499.0 million, with adjusted EPS in the range of 17 cents to 19 cents.

Rexnord currently bears a Zacks Rank #3 (Hold). Other stocks worth a look in the industry are AO Smith Corp. (AOS - Snapshot Report), carrying a Zacks Rank #1 (Strong Buy). Also, Broadwind Energy, Inc. (BWEN - Snapshot Report) and Generac Holdings Inc. (GNRC - Snapshot Report) carry a Zacks Rank #2 (Buy) each.

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