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Luxfer Misses on Earnings & Revenues

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Luxfer Holdings PLC's (LXFR - Free Report) second-quarter 2013 adjusted net income quarter plummeted 8.3% year over year to $10.0 million. Earnings per ADS in the quarter were 37 cents, missing the Zacks Consensus Estimate of 40 cents by 7.5%.


Revenues for Luxfer Group were down 2.1% year over year to $123.0 million. Results were affected by negative foreign currency translation to the tune of $1.0 million. Revenues missed the Zacks Consensus Estimate of $127.0 million.

Gas Cylinders Division generated roughly $64.8 million in revenues, up 13.7% year over year on the back of improved sales in composite alternative fuel cylinders and composite life-support cylinders. The Elektron Division’s revenues amounted to $58.2 million, down 15.3% year over year due to a weaker-than-expected demand in the European regions.


Cost of sales in the second quarter went down 1.8% year over year and represented 75.2% of total revenue, a slight increase from 74.9% reported in the year-ago quarter. Distribution and administrative costs, as a percentage of total revenue, stood at 1.2% and 11.2%, respectively.

Operating margin in the quarter was 12.3%, decreasing 190 basis points, year over year.

Balance Sheet

Exiting the second-quarter, Luxfer’s cash and short-term deposits balance stood at $37.0 million, flat with the previous quarter. Bank and other loans at the end of the quarter stood at $63.6 million.

Cash Flow

Net cash flow from operating activities in the quarter was $6.9 million, compared with $35.3 million in the year-earlier quarter. Capital expenditure was recorded at $4.0 million versus $2.7 million in the year-ago quarter.


Management believes that the European automotive and the U.S. defense markets will remain weak in the quarters to come. However, the Gas Cylinder business is performing well. Management at Luxfer Group anticipates trading profit to be $60.5 million-$63.5 million in 2013, down $5.0 million-$8.0 million from 2012.

Other Stocks to Consider

EnPro Industries, Inc. (NPO - Free Report) announced second-quarter 2013 operating earnings of 87 cents per share, 26.1% above the Zacks Consensus Estimate of 69 cents.

Gorman-Rupp Co. announced second-quarter 2013 operating earnings of 43 cents per share, 30.3% above the Zacks Consensus Estimate of 33 cents.

Barnes Group Inc. (B - Free Report) announced second-quarter 2013 operating earnings of 47 cents per share, in line with the Zacks Consensus Estimate.

Luxfer currently carries a Zacks Rank #3 (Hold).

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