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AZZ net up despite dip in galvanizing sales

Keywords: Tags  AZZ, quarterly results, net income, sales, galvanizing services, electronics manufacture, plant fire, David H. Dingus oil and gas market

NEW YORK — AZZ Inc.’s net income and sales edged up in its fiscal second quarter, buoyed by its electrical and industrial products and services segment and acquisitions made since summer 2012.

The Fort Worth, Texas-based galvanizer and electronics maker reported net income of $16.4 million for the quarter ended Aug. 31, up 3.1 percent from $15.9 million in the same period last year, on sales that increased 23.7 percent to $190 million.

The company’s higher earnings were led by its electrical and industrial products and services segment, which recorded $104.1 million in net sales for the fiscal second quarter, up 56.5 percent from $66.5 million year on year. The company’s latest acquisitions—industrial maintenance company Aquilex Specialty Repair & Overhaul LLC and nuclear industry equipment company Nuclear Logistics Inc.—contributed $55.6 million in revenue, the company reported Sept. 27.

AZZ’s galvanizing service segment recorded sales of $85.6 million for the quarter, down 1.4 percent from $86.9 million in the same period last year. The company cited an April 2012 fire at its hot-dip galvanizing facility in Joliet, Ill., for the drop, which will be offset with insurance proceeds when the claim is settled, AZZ said. The Joliet facility is expected
to reopen in October.

"Despite the continued sluggish economic conditions in our served markets, combined with significant project delays, we anticipate that the net earnings for fiscal 2014 will reflect an improvement over fiscal 2013," AZZ president and chief executive officer David H. Dingus said in a statement. He added that the company has gained market share in the power generation, oil and gas, and industrial markets with its acquisitions.

"Our businesses are well positioned to capture a meaningful share of this spending, which we expect to occur in fiscal 2015," he said.

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