JBT QIII/2019 results reported
"We continued to capture the benefits of our initiatives that make JBT a more efficient operation, with better than expected margin expansion in the third quarterof 2019," said Tom Giacomini, Chairman, President, and Chief Executive Officer.
"We also enjoyed continued strength at AeroTech and across our aftermarketbusiness. However, we have not seen improvement in orders at FoodTech, with a continued lag converting commercial activity to customer commitments due to business uncertainty," he added.
Third quarter 2019 revenue of $489.4 mill. increased 2%, as 10% growth from acquisitions offset a 3% decline organically, a 2% headwind from foreign exchange translation, and a 4% decline attributable to the absence of the ASC 606 transition benefit recorded in the third quarter of2018.
The operating income was $48.6 mill. in the third quarter of 2019. Net income for the third quarter of 2019 was $33.5 mill. Adjusted EBITDA expanded 15% to $75.8 mill., with a 190 basis point margin improvement to 15.5%. Margins benefited from continued operational improvements resulting from the restructuring program and implementation of the JBT operating system as well asa higher percentage of revenue from aftermarket business.
FoodTech operating profit margins in the third quarter of 2019 were roughly level with the year-ago-period, while absorbing higher acquisition-related costs. FoodTech adjusted EBITDA margins expanded 240 basis points to 19.7%. AeroTech operatingprofit margin increased 250 basis points while AeroTech adjusted EBITDA margins expanded 280 basis points to 15.2%.
Diluted earnings per share from continuing operations was $1.04 for the third quarter of 2019 compared with $0.82 in the third quarter of 2018. Adjusted earningsper share was $1.28 compared with $1.12 in the year-ago period. Third quarter 2019 orders increased 3.5% year over year on flat orders at FoodTech and a 9% increase at AeroTech. Backlog declined 8% at FoodTech and increased 8% at AeroTech.
"We continued to capture benefits from our company-wide restructuring program as reflected in incremental savings of $7 mill. in the third quarter," said Brian Deck, Executive Vice President and Chief Financial Officer. "We have adjusted full-year 2019 guidance to reflect better than expected margin gains, offset by softer FoodTech revenue," he added.
For 2019, JBT expects revenue growth of 2 to 3% organically, with about 1% at FoodTech and 5 to 6% at AeroTech, and 7% from acquisitions. Foreign exchange is expected to be a 2 to 3% revenue headwind. Reported revenue is expected to be flat to up 1% year over year, considering 2018 included revenue of $127 mill. associated with the transition to ASC 606.