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Posted: 17 Dec 2009 05:08 AM PST

MILWAUKEE--(BUSINESS WIRE)--Actuant Corporation (NYSE: ATU - News) today announced results for its first quarter ended November 30, 2009.

Highlights

Reported first quarter sales of $305 million, the highest quarterly amount in the past four quarters. Year-over-year first quarter core sales declined 20%, a sequential improvement from the 27% decline in the previous quarter.
Diluted earnings per share ("EPS") of $0.20 (excluding $3.6 million or $0.03 per diluted share in restructuring charges) were ahead of expectations due to the higher sales volume. (See attached reconciliation of earnings.)
Generated $44 million of cash flow from operations (excluding the $37 million impact of the expiration of the accounts receivable securitization program).
EBITDA margins were in line with expectations, including a 360 basis point sequential improvement in the Engineered Solutions segment. (See attached reconciliation of earnings.)

Robert C. Arzbaecher, Chairman and CEO of Actuant commented, "First quarter sales and earnings per share, adjusted for special items, were ahead of our expectations. Three of the four segments saw year-over-year core sales improve sequentially, while the Energy segment's sales stabilized. Despite unfavorable segment mix and higher incentive compensation expense, consolidated margins were in line with the fourth quarter due to operating improvements, most notably within the Engineered Solutions segment. We were also pleased with the working capital management and progress on restructuring projects during the quarter. Overall, we are encouraged by the trends we are seeing in the businesses as well as the continued strong execution by Actuant's employees across the globe."

Consolidated Results

Consolidated sales for the first quarter declined 18% to $305 million compared to $371 million in the first quarter of fiscal 2009. Core sales (sales excluding the impact of acquisitions, divestitures and currency rate changes) declined 20%. Earnings and EPS from continuing operations in the fiscal 2010 first quarter were $11.9 million and $0.17, respectively, compared to earnings from continuing operations of $11.9 million and EPS of $0.19 in the comparable prior year quarter. Results from continuing operations for the first quarter of fiscal 2010 included pre-tax restructuring charges of $3.6 million, or $0.03 per diluted share. Fiscal 2009 first quarter results included a pre-tax non-cash asset impairment charge of $26.6 million, or $0.26 per diluted share as well as pre-tax restructuring charges of $0.7 million, or $0.01 per diluted share. Excluding these items, EPS from continuing operations was $0.20 in the first quarter of fiscal 2010 compared to $0.45 in the prior year's quarter. (See attached reconciliation of earnings.)

Segment Results

Industrial Segment
(US $ in millions)
	Three Months Ended November 30,
	2009		2008
Sales	$65.3		$90.5
Operating Profit (1)	$13.9		$26.1
Operating Profit % (1)	21.2	%	28.8	%

(1) Results for the three months ended November 30, 2009 and 2008 exclude restructuring charges of $0.2 million and $0.1 million, respectively.

First quarter fiscal 2010 Industrial segment sales decreased 28% to $65 million. Excluding foreign currency rate changes, Industrial segment core sales were 30% below the prior year due to lower demand across most regions and end markets. Sales increased 6% sequentially and the core sales trend improved to -30% from -35% in the fourth quarter of fiscal 2009. Operating profit and profit margins (excluding restructuring costs) declined from the prior year due to lower sales and production levels, higher incentive compensation expense and manufacturing variances associated with facility consolidations.

Energy Segment
(US $ in millions)

	Three Months Ended November 30,
	2009		2008
Sales	$64.1		$74.0
Operating Profit (2)	$11.5		$15.6
Operating Profit % (2)	18.0	%	21.1	%

(2) Results for both three month periods exclude restructuring charges of $0.1 million.

Fiscal 2010 first quarter Energy segment sales decreased 13% to $64 million. Core sales declined 12% due primarily to lower project based revenue. Weakness in exploration related demand as well as the deferral or reduction of maintenance at certain existing oil & gas installations continued. The segment's core sales rate of change was approximately level with the prior quarter. Operating profit margin (excluding restructuring costs) declined year-over-year reflecting unfavorable acquisition mix and lower sales volumes.

Electrical Segment
(US $ in millions)

	Three Months Ended November 30,
	2009		2008
Sales	$86.6		$102.9
Operating Profit (3)	$3.4		$5.9
Operating Profit % (3)	3.9	%	5.7	%

(3) Results for the three months ended November 30, 2009 and 2008 exclude restructuring charges of $2.7 million and $0.1 million, respectively.

Electrical segment fiscal 2010 first quarter sales declined 16% to $87 million. Core sales decreased 18% from the prior year reflecting weakness across the segment's end markets, most notably in the utility and commercial construction markets as well as in the European DIY market. First quarter operating profit margin (excluding restructuring costs) declined to 3.9% reflecting lower volumes and inefficiencies associated with the significant restructuring programs underway in the segment.

Engineered Solutions Segment
(US $ in millions)

	Three Months Ended November 30,
	2009		2008
Sales	$89.2		$103.4
Operating Profit (4)	$5.5		$7.9
Operating Profit % (4)	6.1	%	7.6	%

(4) Results for the three months ended November 30, 2009 exclude restructuring charges of $0.4 million. Results for the three months ended November 30, 2008 exclude a $26.6 million pre-tax non-cash asset impairment charge and $0.5 million of restructuring charges.

First quarter fiscal 2010 Engineered Solutions segment sales declined 14% reflecting reduced demand from global truck and specialty vehicle end markets. However, the core revenue year-over-year rate of change improved sequentially from -37% in the fourth quarter of fiscal 2009 to -18% in the first quarter due to higher sales to the automotive and RV markets as well as reduced destocking at major global truck OEM's. First quarter operating margins (excluding restructuring) continue to be negatively impacted by the lower sales; however, they improved 360 basis points sequentially due to a lower cost structure, improved product mix and higher production levels.

Corporate

Corporate expenses for the first quarter of fiscal 2010, excluding restructuring charges of approximately $0.2 million, were $5.5 million compared to $3.2 million in the comparable prior year quarter. The prior year amount included $2.3 million of income related to the reduced valuation of the Company's long term incentive plan (LTIP).

Financial Position

Net debt at November 30, 2009 was $391 million (total debt of $405 million less $14 million of cash). Net debt declined $3 million from the beginning of the quarter as robust free cash flow more than offset the $37 million increase associated with the expiration of the Company's accounts receivable securitization program during the quarter. As of November 30, 2009, the Company had over $350 million of unused revolver capacity.

Outlook

Arzbaecher continued, "From a global economic standpoint, we believe the worst is behind us. We've experienced stabilization in most end markets and sequential improvement in certain early cycle businesses and those where inventory destocking was meaningful. While visibility in our Energy segment remains challenging, it appears to have stabilized. From a cost reduction and business simplification standpoint, our activities are on track and we are confident we will realize the $35 million in committed annual cost savings once these projects have been completed.

Given positive first quarter results and better visibility, we have narrowed our fiscal 2010 revenue guidance to $1.20-$1.25 billion. We anticipate diluted EPS for the full year, excluding restructuring costs, to be in the $0.82-$0.97 range. Our full year free cash flow forecast has also been increased to $100-$110 million, which would again result in free cash flow conversion in excess of 100%. We continue to pursue accretive acquisition opportunities which, when executed, will be incremental to this guidance.

We expect second quarter sales to be in the $275-$295 million range, sequentially lower than the first quarter due to normal seasonality. However, EPS is expected to improve from $0.11 in the second quarter of fiscal 2009 (excluding restructuring charges) to a range of $0.12-$0.17 (excluding restructuring charges). Following the anniversary of the economic slowdown in our fiscal 2009 second quarter, we are optimistic that our quarterly earnings will improve meaningfully in the second half of fiscal 2010."

Conference Call Information

An investor conference call is scheduled for 10am CT today, December 17, 2009. Webcast information and conference call materials will be made available on the Actuant company website (www.actuant.com) prior to the start of the call.

Safe Harbor Statement

Certain of the above comments represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. Management cautions that these statements are based on current estimates of future performance and are highly dependent upon a variety of factors, which could cause actual results to differ from these estimates. Actuant's results are also subject to general economic conditions, variation in demand from customers, the impact of geopolitical activity on the economy, continued market acceptance of the Company's new product introductions, the successful integration of acquisitions, restructuring, operating margin risk due to competitive pricing and operating efficiencies, supply chain risk, material and labor cost increases, foreign currency fluctuations and interest rate risk. See the Company's Form 10-K filed with the Securities and Exchange Commission for further information regarding risk factors. Actuant disclaims any obligation to publicly update or revise any forward-looking statements as a result of new information, future events or any other reason.

About Actuant Corporation

Actuant Corporation is a diversified industrial company with operations in more than 30 countries. The Actuant businesses are leaders in a broad array of niche markets including branded hydraulic and electrical tools and supplies; specialized products and services for energy related industries and highly engineered position and motion control systems. The Company was founded in 1910 and is headquartered in Butler, Wisconsin. Actuant trades on the NYSE under the symbol ATU. For further information on Actuant and its businesses, visit the Company's website at www.actuant.com.

(tables follow)

Actuant Corporation
Condensed Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)

			November 30,		August 31,
			2009		2009

ASSETS
Current assets
	Cash and cash equivalents		$ 13,822		$ 11,385
	Accounts receivable, net		205,572		155,520
	Inventories, net		167,963		160,656
	Deferred income taxes		20,800		20,855
	Other current assets		15,853		15,246
		Total current assets	424,010		363,662

Property, plant and equipment, net			127,129		129,118
Goodwill			719,415		711,522
Other intangible assets, net			346,215		350,249
Other long-term assets			12,356		13,880

		Total assets	$ 1,629,125		$ 1,568,431


LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
	Short-term borrowings		$ 1,697		$ 4,964
	Trade accounts payable		122,587		108,333
	Accrued compensation and benefits		30,830		30,079
	Income taxes payable		28,601		20,578
	Other current liabilities		75,942		71,140
		Total current liabilities	259,657		235,094

Long-term debt, less current maturities			402,753		400,135
Deferred income taxes			118,367		117,335
Pension and postretirement benefit accruals			38,608		37,662
Other long-term liabilities			32,113		30,835

Shareholders' equity
	Capital stock		13,570		13,543
	Additional paid-in capital		(184,066	)	(188,644	)
	Accumulated other comprehensive loss		(10,796	)	(24,599	)
	Stock held in trust		(1,827	)	(1,766	)
	Deferred compensation liability		1,827		1,766
	Retained earnings		958,919		947,070
		Total shareholders' equity	777,627		747,370

Total liabilities and shareholders' equity			$ 1,629,125		$ 1,568,431

Actuant Corporation
Condensed Consolidated Statements of Earnings
(Dollars in thousands except per share amounts)
(Unaudited)


	Three Months Ended
	November 30,	November 30,
	2009	2008

Net sales	$ 305,193	$ 370,789
Cost of products sold	198,571	240,564
Gross profit	106,622	130,225

Selling, administrative and engineering expenses	72,496	73,676
Restructuring charges	3,574	674
Impairment charges	-	26,553
Amortization of intangible assets	5,457	4,231
Operating profit	25,095	25,091

Financing costs, net	8,538	12,235
Other (income) expense, net	304	(539	)
Earnings from continuing operations before income
tax expense	16,253	13,395

Income tax expense	4,399	1,497

Earnings from continuing operations	11,854	11,898

Loss from discontinued operations, net of income taxes	-	(300	)

Net earnings	$ 11,854	$ 11,598

Earnings from continuing operations per share
Basic	$ 0.18	$ 0.21
Diluted	0.17	0.19

Earnings per share
Basic	$ 0.18	$ 0.21
Diluted	0.17	0.19

Weighted average common shares outstanding
Basic	67,542	56,022
Diluted	74,012	64,395

Actuant Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)


	Three Months Ended
	November 30,		November 30,
	2009		2008

Operating Activities
Net earnings	$ 11,854		$ 11,598
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	12,187		12,747
Stock-based compensation expense	1,943		1,537
Provision (benefit) for deferred income taxes	256		(10,360	)
Impairment charges	-		26,552
Amortization of debt discount and debt issuance costs	962		880
Other	231		(817	)
Changes in operating assets and liabilities, excluding the effects of the business acquisitions
Accounts receivable	(8,032	)	4,974
Accounts receivable securitization program	-		483
Expiration of accounts receivable securitization program	(37,106	)	-
Inventories	(4,400	)	(5,332	)
Prepaid expenses and other assets	30		(38	)
Trade accounts payable	12,439		(19,683	)
Income taxes payable	9,439		1,895
Other accrued liabilities	6,976		(11,918	)
Net cash provided by operating activities	6,779		12,518

Investing Activities
Proceeds from sale of property, plant and equipment	275		94
Capital expenditures	(3,178	)	(7,634	)
Business acquisitions, net of cash acquired	-		(231,768	)
Net cash used in investing activities	(2,903	)	(239,308	)

Financing Activities
Net borrowings on revolving credit facilities and
short-term borrowings	22,382		187,995
Principal repayments on term loans and other debt	-		(155,000	)
Proceeds from term loan	-		115,000
Open market repurchases of 2% Convertible Notes	(22,894	)	-
Debt issuance costs	-		(5,333	)
Stock option exercises, related tax benefits and other	487		2,479
Cash dividend	(2,702	)	(2,251	)
Net cash (used in) provided by financing activities	(2,727	)	142,890

Effect of exchange rate changes on cash	1,288		(8,431	)
Net increase (decrease) in cash and cash equivalents	2,437		(92,331	)
Cash and cash equivalents - beginning of period	11,385		122,549
Cash and cash equivalents - end of period	$ 13,822		$ 30,218

ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA FROM CONTINUING OPERATIONS
	(Dollars in thousands)

			FISCAL 2009										FISCAL 2010
			Q1		Q2		Q3		Q4		TOTAL		Q1		Q2	Q3	Q4	TOTAL
SALES
	INDUSTRIAL SEGMENT		$ 90,524		$ 71,682		$ 62,843		$ 61,802		$ 286,851		$ 65,308					$ 65,308
	ENERGY SEGMENT		73,982		59,526		62,251		63,731		259,490		64,065					64,065
	ELECTRICAL SEGMENT		102,898		89,719		83,752		87,792		364,161		86,618					86,618
	ENGINEERED SOLUTIONS SEGMENT		103,385		72,872		76,308		76,731		329,296		89,202					89,202
		TOTAL	$ 370,789		$ 293,799		$ 285,154		$ 290,056		$ 1,239,798		$ 305,193					$ 305,193

% SALES GROWTH
	INDUSTRIAL SEGMENT		4	%	-18	%	-38	%	-37	%	-23	%	-28	%				-28	%
	ENERGY SEGMENT		49	%	37	%	7	%	5	%	22	%	-13	%				-13	%
	ELECTRICAL SEGMENT		-21	%	-29	%	-34	%	-22	%	-27	%	-16	%				-16	%
	ENGINEERED SOLUTIONS SEGMENT		-23	%	-44	%	-47	%	-37	%	-38	%	-14	%				-14	%
		TOTAL	-8	%	-24	%	-34	%	-26	%	-23	%	-18	%				-18	%

OPERATING PROFIT (LOSS)
	INDUSTRIAL SEGMENT		$ 26,107		$ 15,972		$ 15,597		$ 13,692		$ 71,368		$ 13,854					$ 13,854
	ENERGY SEGMENT		15,647		5,895		11,772		11,801		45,115		11,502					11,502
	ELECTRICAL SEGMENT		5,896		2,404		3,119		4,213		15,632		3,357					3,357
	ENGINEERED SOLUTIONS SEGMENT		7,865		(2,735	)	991		342		6,463		5,481					5,481
	CORPORATE / GENERAL		(3,197	)	(5,013	)	(4,815	)	(5,042	)	(18,066	)	(5,471	)				(5,471	)
		TOTAL - EXCLUDING IMPAIRMENT / RESTRUCTURING CHARGES	$ 52,318		$ 16,523		$ 26,664		$ 25,006		$ 120,512		$ 28,723					$ 28,723
	IMPAIRMENT CHARGES		(26,553	)	-		(4,768	)	-		(31,321	)	-					-
	RESTRUCTURING CHARGES (1)		(674	)	(3,039	)	(10,749	)	(9,277	)	(23,739	)	(3,628	)				(3,628	)
		TOTAL	$ 25,091		$ 13,484		$ 11,147		$ 15,729		$ 65,452		$ 25,095					$ 25,095

OPERATING PROFIT %
	INDUSTRIAL SEGMENT		28.8	%	22.3	%	24.8	%	22.2	%	24.9	%	21.2	%				21.2	%
	ENERGY SEGMENT		21.1	%	9.9	%	18.9	%	18.5	%	17.4	%	18.0	%				18.0	%
	ELECTRICAL SEGMENT		5.7	%	2.7	%	3.7	%	4.8	%	4.3	%	3.9	%				3.9	%
	ENGINEERED SOLUTIONS SEGMENT		7.6	%	-3.8	%	1.3	%	0.4	%	2.0	%	6.1	%				6.1	%
		TOTAL (INCLUDING CORPORATE) - EXCLUDING IMPAIRMENT / RESTRUCTURING CHARGES	14.1	%	5.6	%	9.4	%	8.6	%	9.7	%	9.4	%				9.4	%

EBITDA
	INDUSTRIAL SEGMENT		$ 27,139		$ 17,058		$ 18,208		$ 15,322		$ 77,727		$ 15,633					$ 15,633
	ENERGY SEGMENT		21,671		11,492		15,080		16,235		64,478		15,493					15,493
	ELECTRICAL SEGMENT		7,103		3,440		5,307		6,388		22,238		5,270					5,270
	ENGINEERED SOLUTIONS SEGMENT		12,417		1,274		3,879		4,953		22,524		8,981					8,981
	CORPORATE / GENERAL		(3,110	)	(4,058	)	(4,237	)	(4,196	)	(15,601	)	(4,771	)				(4,771	)
		TOTAL - EXCLUDING IMPAIRMENT / RESTRUCTURING CHARGES	$ 65,220		$ 29,206		$ 38,237		$ 38,702		$ 171,366		$ 40,606					$ 40,606
	IMPAIRMENT CHARGES		(26,553	)	-		(4,768	)	-		(31,321	)	-					-
	RESTRUCTURING CHARGES (1)		(674	)	(3,039	)	(10,749	)	(9,277	)	(23,739	)	(3,628	)				(3,628	)
		TOTAL	$ 37,993		$ 26,167		$ 22,720		$ 29,425		$ 116,306		$ 36,978					$ 36,978

EBITDA %
	INDUSTRIAL SEGMENT		30.0	%	23.8	%	29.0	%	24.8	%	27.1	%	23.9	%				23.9	%
	ENERGY SEGMENT		29.3	%	19.3	%	24.2	%	25.5	%	24.8	%	24.2	%				24.2	%
	ELECTRICAL SEGMENT		6.9	%	3.8	%	6.3	%	7.3	%	6.1	%	6.1	%				6.1	%
	ENGINEERED SOLUTIONS SEGMENT		12.0	%	1.7	%	5.1	%	6.5	%	6.8	%	10.1	%				10.1	%
		TOTAL (INCLUDING CORPORATE) - EXCLUDING IMPAIRMENT / RESTRUCTURING CHARGES	17.6	%	9.9	%	13.4	%	13.3	%	13.8	%	13.3	%				13.3	%

Note: The total of the individual quarters may not equal the annual total due to rounding.

(1) The restructuring charge for the first quarter of fiscal 2010 includes a $54 charge included in cost of products sold on the Condensed Consolidated Statements of Earnings. The restructuring charges for the third and fourth quarters of fiscal 2009 and total fiscal 2009 include $276, $1,037 and $1,313 of charges included in cost of products sold on the Condensed Consolidated Statements of Earnings.

ACTUANT CORPORATION
Reconciliation of GAAP measures to non-GAAP measures
	(Dollars in thousands, except for per share amounts)

			FISCAL 2009										FISCAL 2010
			Q1		Q2		Q3		Q4		TOTAL		Q1	Q2	Q3	Q4	TOTAL

NET EARNINGS (LOSS), EXCLUDING RESTRUCTURING CHARGES,
IMPAIRMENT CHARGES, DEBT EXTINGUISHMENT CHARGES, AND DISCONTINUED OPERATIONS (1)
	NET EARNINGS (LOSS) (GAAP MEASURE)		$ 11,598		$ 3,244		$ (17,635	)	$ 16,515		$ 13,723		$ 11,854				$ 11,854
		RESTRUCTURING CHARGES, NET OF TAX BENEFIT	481		2,028		7,173		6,223		15,905		2,601				2,601
		IMPAIRMENT CHARGES, NET OF TAX BENEFIT	16,463		-		2,981		-		19,444		-				-
		DEBT EXTINGUISHMENT CHARGES, NET OF TAX BENEFIT	(236	)	-		-		1,303		1,067		-				-
		DISCONTINUED OPERATIONS, NET OF TAX BENEFIT	300		985		20,846		(12,003	)	10,128		-				-
	TOTAL (NON-GAAP MEASURE)		$ 28,606		$ 6,257		$ 13,365		$ 12,038		$ 60,267		$ 14,455				$ 14,455


DILUTED EARNINGS (LOSS) PER SHARE, EXCLUDING RESTRUCTURING CHARGES,
IMPAIRMENT CHARGES, DEBT EXTINGUISHMENT CHARGES, AND DISCONTINUED OPERATIONS (1)
	NET EARNINGS (LOSS) (GAAP MEASURE)		$ 0.19		$ 0.06		$ (0.27	)	$ 0.24		$ 0.24		$ 0.17				$ 0.17
		RESTRUCTURING CHARGES, NET OF TAX BENEFIT	0.01		0.03		0.11		0.09		0.24		0.03				0.03
		IMPAIRMENT CHARGES, NET OF TAX BENEFIT	0.26		-		0.05		-		0.29		-				-
		DEBT EXTINGUISHMENT CHARGES, NET OF TAX BENEFIT	(0.00	)	-		-		0.02		0.02		-				-
		DISCONTINUED OPERATIONS, NET OF TAX BENEFIT	-		0.02		0.33		(0.17	)	0.15		-				-
	TOTAL (NON-GAAP MEASURE)		$ 0.45		$ 0.11		$ 0.22		$ 0.18		$ 0.95		$ 0.20				$ 0.20

EBITDA (2)
	NET EARNINGS (LOSS) (GAAP MEASURE)		$ 11,598		$ 3,244		$ (17,635	)	$ 16,515		$ 13,723		$ 11,854				$ 11,854
		FINANCING COSTS, NET	12,235		9,904		9,025		10,685		41,849		8,538				8,538
		INCOME TAX EXPENSE	1,497		(604	)	(1,907	)	540		(474	)	4,399				4,399
		DEPRECIATION & AMORTIZATION	12,363		12,638		12,391		13,688		51,080		12,187				12,187
		DISCONTINUED OPERATIONS, NET OF TAX BENEFIT	300		985		20,846		(12,003	)	10,128		-				-
		EBITDA (NON-GAAP MEASURE)	$ 37,993		$ 26,167		$ 22,720		$ 29,425		$ 116,306		$ 36,978				$ 36,978
		IMPAIRMENT CHARGES	26,553		-		4,768		-		31,321		-				-
		RESTRUCTURING CHARGES	674		3,039		10,749		9,277		23,739		3,628				3,628
		EBITDA (NON-GAAP MEASURE) - EXCLUDING DISCONTINUED OPERATIONS,
		IMPAIRMENT, AND RESTRUCTURING CHARGES	$ 65,220		$ 29,206		$ 38,237		$ 38,702		$ 171,366		$ 40,606				$ 40,606

(1) Net earnings and diluted earnings per share excluding restructuring charges, impairment charges, debt extinguishment charges and discontinued operations represent net earnings and diluted earnings per share per the Condensed Consolidated Statements of Earnings net of charges or credits for items to be highlighted for comparability purposes. These measures should not be considered as an alternative to net earnings or diluted earnings per share as an indicator of the Company's operating performance. However, this presentation is important to investors for understanding the operating results of the current portfolio of Actuant companies. The total of the individual components may not equal due to rounding.

(2) EBITDA represents net earnings before financing costs, net, income tax expense, depreciation & amortization, and discontinued operations. EBITDA is not a calculation based upon generally accepted accounting principles (GAAP). The amounts included in the EBITDA calculation, however, are derived from amounts included in the Condensed Consolidated Statements of Earnings data. EBITDA should not be considered as an alternative to net earnings or operating profit as an indicator of the Company's operating performance, or as an alternative to operating cash flows as a measure of liquidity. Actuant has presented EBITDA because it regularly reviews this as a measure of the company's ability to incur and service debt. In addition, EBITDA is used by many of our investors and lenders, and is presented as a convenience to them. However, the EBITDA measure presented may not always be comparable to similarly titled measures reported by other companies due to differences in the components of the calculation. The total of the individual quarters may not equal the annual total due to rounding.

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Winnebago Industries Reports Improved Results for First Quarter Fiscal ... - Yahoo Finance

Posted: 17 Dec 2009 04:11 AM PST

FOREST CITY, Iowa--(BUSINESS WIRE)--Winnebago Industries, Inc. (NYSE:WGO - News), the leading United States motor home manufacturer, today reported improved financial results for the Company's first quarter of fiscal year 2010.

Revenues for the first quarter of fiscal 2010 ended November 28, 2009 were $81.0 million, an increase of 16.7 percent, versus $69.4 million for the first quarter of fiscal 2009. The Company reported an operating loss of $6.0 million for the quarter, versus an operating loss of $16.9 million for the first quarter of fiscal 2009. Net loss for the first quarter was $1.3 million versus $9.6 million for the first quarter of fiscal 2009. On a diluted per share basis, the Company had a net loss of 5 cents for the first quarter of fiscal 2010 versus a net loss of 33 cents for the first quarter of fiscal 2009. The net loss for the first quarter reflected the positive impact of $4.9 million in tax benefits associated with additional fiscal year 2009 net operating loss carryback due to recent tax law changes; however, no tax benefits have been recorded on first quarter fiscal 2010 pre-tax losses which are not immediately subject to refund.

"We are extremely pleased to see an increase in revenues, as well as posting a small gross profit in our first quarter," said Winnebago Industries' Chairman, CEO and President Bob Olson. "As difficult as this recession has been for Winnebago Industries and the entire RV industry, we believe the worst may be over."

Winnebago Industries' sales order backlog was 1,521 motor homes at November 28, 2009, an increase of 350 percent compared to the end of the first quarter of fiscal 2009. This also represents an increase of 62 percent from August 29, 2009, the end of our fourth quarter. "The increased demand for our products is particularly noteworthy since it is seasonally very unusual to have a significant increase at this time of year," said Olson. "We have seen particular strength in the backlog for our Class A gas and diesel products. Due to the escalation of our sales order backlog, we have increased our production levels and during the first quarter of fiscal 2010, our employment grew by approximately 350 employees."

"While the economic environment, the availability of credit and the level of retail demand remain tenuous, we believe that dealer inventory has finally bottomed out," said Olson. "Inventory of Winnebago, Itasca and ERA products on our dealers' lots declined 52 percent to 1,567 motor homes as of November 28, 2009 versus 3,269 motor homes as of the end of the first quarter of fiscal 2009. Retail sales have been much higher than wholesale shipments throughout the past 18 months, providing further opportunity for added growth in the future through inventory replenishment even without an increase in retail demand."

According to Statistical Surveys, Inc., the retail reporting service for the RV industry, Winnebago Industries' gained market share in the combined Class A and C markets with 19.3 percent for the first 10 months of calendar 2009, compared to 18.3 percent for the same period last year.

"We had an excellent reception of our new 2010 products at the recent RVIA National RV Trade Show in Louisville, KY," continued Olson. "We were pleased with the increased level of orders placed during the show as compared to last year. Many dealers also indicated they are interested in carrying fewer manufacturers' product lines on their lots, with the intention to partner with manufacturers who are financially stable and able to provide product, sales and service support for the long-term."

Conference Call

Winnebago Industries will conduct a conference call in conjunction with this release at 9 a.m. Central Time today, Thursday, December 17, 2009. Members of the news media, investors and the general public are invited to access a live broadcast of the conference call via the Investor Relations page of the Company's website at http://www.winnebagoind.com/investor.html. The event will be archived and available for replay for the next 90 days.

About Winnebago Industries

Winnebago Industries, Inc. is the leading U.S. manufacturer of motor homes which are self-contained recreation vehicles used primarily in leisure travel and outdoor recreation activities. The Company builds quality motor homes under the Winnebago, Itasca and ERA brand names with state-of-the-art computer-aided design and manufacturing systems on automotive-styled assembly lines. The Company's common stock is listed on the New York and Chicago Stock Exchanges and traded under the symbol WGO. Options for the Company's common stock are traded on the Chicago Board Options Exchange. For access to Winnebago Industries' investor relations material or to add your name to an automatic email list for Company news releases, visit, http://www.winnebagoind.com/investor.html.

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain. A number of factors could cause actual results to differ materially from these statements, including, but not limited to interest rates and availability of credit, low consumer confidence, significant increase in repurchase obligations, inadequate liquidity or capital resources, availability and price of fuel, a further or continued slowdown in the economy, availability of chassis and other key component parts, sales order cancellations, slower than anticipated sales of new or existing products, new product introductions by competitors, the effect of global tensions, and other factors. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from that projected or suggested is contained in the Company's filings with the Securities and Exchange Commission (SEC) over the last 12 months, copies of which are available from the SEC or from the Company upon request.

Winnebago Industries, Inc.
Unaudited Statements of Income
(In thousands, except percent and per share data)

	Quarter Ended
	Nov. 28, 2009						Nov. 29, 2008
Net revenues	$	81,017		100.0		%	$	69,398		100.0		%
Cost of goods sold		80,493		99.4				78,292		112.8
Gross profit (deficit)		524		0.6				(8,894	)	(12.8	)
Operating expenses
Selling		3,229		4.0				3,665		5.3
General and administrative		3,272		4.0				4,331		6.2
Total operating expenses		6,501		8.0				7,996		11.5
Operating loss		(5,977	)	(7.4	)			(16,890	)	(24.3	)
Financial (expense) income		(233	)	(0.3	)			524		0.7
Loss before income taxes		(6,210	)	(7.7	)			(16,366	)	(23.6	)
Benefit for taxes		(4,866	)	(6.0	)			(6,770	)	(9.8	)
Net loss	$	(1,344	)	(1.7	)	%	$	(9,596	)	(13.8	)	%
Loss per common share:
Basic	$	(0.05	)				$	(0.33	)
Diluted	$	(0.05	)				$	(0.33	)
Weighted average common shares outstanding:
Basic		29,073						29,027
Diluted		29,086						29,039

Winnebago Industries, Inc.
Unaudited Condensed Balance Sheets
(In thousands)

	Nov. 28, 2009		Aug. 29, 2009
ASSETS
Current assets:
Cash and cash equivalents	$	29,205	$	36,566
Short-term investments		13,700		13,500
Receivables, net		11,963		11,717
Inventories		51,079		46,850
Income taxes receivable		22,140		17,356
Prepaid and other		3,351		3,425
Total current assets		131,438		129,414

Property and equipment, net		26,826		28,040
Assets held for sale		6,515		6,515
Long-term investments, less impairments		19,806		19,794
Investment in life insurance		22,752		22,451
Other assets		16,069		14,252
Total assets	$	223,406	$	220,466

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	14,308	$	10,370
Short-term ARS borrowings		9,100		9,100
Income taxes payable		313		299
Accrued expenses		30,348		30,185
Total current liabilities		54,069		49,954

Long-term liabilities:
Unrecognized tax benefits		8,984		9,012
Postretirement health care and deferred compensation benefits, net of current portion		70,143		69,169
Total long-term liabilities		79,127		78,181

Stockholders' equity		90,210		92,331
Total liabilities and stockholders' equity	$	223,406	$	220,466

Winnebago Industries, Inc.
Unaudited Condensed Statement of Cash Flows
(In thousands)

	Quarter Ended			Quarter Ended
	Nov. 28, 2009			Nov. 29, 2008
Operating activities:
Net loss	$	(1,344	)	$	(9,596	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation		1,684			2,137
Stock-based compensation		164			288
Postretirement benefit income and deferred compensation expense		323			508
Deferred income taxes		-			(1,008	)
Increase in cash surrender value of life insurance policies		(296	)		(246	)
Other		(41	)		19
Change in assets and liabilities:
Inventories		(4,229	)		27,302
Receivables and prepaid assets		(449	)		4,704
Income taxes receivable and unrecognized tax benefits		(4,887	)		(4,510	)
Accounts payable and accrued expenses		4,055			(5,951	)
Postretirement and deferred compensation benefits		(837	)		(781	)
Net cash (used in) provided by operating activities		(5,857	)		12,866

Investing activities:
Proceeds from the sale or maturity of investments		-			3,100
Purchases of property and equipment		(509	)		(689	)
Other		(420	)		(712	)
Net cash (used in) provided by investing activities		(929	)		1,699

Financing activities:
Payments for purchase of common stock		(249	)		(162	)
Payments of cash dividends		-			(3,489	)
Proceeds from issuance of treasury stock		15			-
Other		(341	)		-
Net cash used in financing activities		(575	)		(3,651	)

Net (decrease) increase in cash and cash equivalents		(7,361	)		10,914

Cash and cash equivalents at beginning of period		36,566			17,851

Cash and cash equivalents at end of period	$	29,205		$	28,765

Winnebago Industries, Inc.
Unaudited Motor Home Deliveries

	Quarter Ended		Change
	Nov. 28, 2009	Nov. 29, 2008	Units		%
Motor home unit deliveries
Class A Gas	235	165	70		42.4
Class A Diesel	180	118	62		52.5
Total Class A	415	283	132		46.6
Class B	62	35	27		77.1
Class C	317	338	(21	)	(6.2	)
Total deliveries	794	656	138		21.0

Winnebago Industries, Inc.
Unaudited Backlog and Dealer Inventory
(Units)

		As of				Change
		Nov. 28, 2009		Nov. 29, 2008		Units		%
Sales order backlog
Class A Gas		531		84		447		532.1
Class A Diesel		381		35		346		988.6
Total Class A		912		119		793		666.4
Class B		17		8		9		112.5
Class C		592		211		381		180.6
Total backlog*		1,521		338		1,183		350.0

Total approximate revenue dollars (in thousands)	$	149,501	$	27,648	$	121,853		440.7

Dealer inventory		1,567		3,269		(1,702	)	(52.1	)

* The Company includes in its backlog all accepted orders from dealers to be shipped within the next six months. Orders in backlog can be cancelled or postponed at the option of the purchaser at any time without penalty and, therefore, backlog may not necessarily be an accurate measure of future sales.

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Duracell Introduces New Batteries to RV Market - MotorHome

Posted: 17 Dec 2009 12:43 AM PST

Duracell today announced a line of batteries that address the new power needs of automotive, marine and RV vehicles.

With more electronic devices in these vehicles creating a greater drain on batteries, today's consumer demands power solutions that keep them and their vehicles operating at the highest level. Duracell answers the call with Duracell AGM with Extreme Power, Duracell EHP Advanced Generation and Duracell Marine & RV batteries, the company announced in a news release.

Duracell offers two automotive batteries to suit different needs of the auto enthusiast — Duracell AGM with Extreme Power and Duracell EHP Advanced Generation batteries.

Duracell AGM with Extreme Power batteries features Absorbed Glass Mat Technology (AGM) to deliver two times the durability, dependability and long-lasting high-performance to withstand the demands of multiple accessory loads. With this technology, the battery has no free-flowing acid — special micro-fiber glass mats absorb the acid to prevent spilling or leakage — making the battery even suitable for extreme applications like tuner cars and off-road vehicles.

The Duracell EHP Advanced Generation batteries are designed to safeguard against damaging temperatures that can decrease battery life to give the driver confidence to start their vehicle in warm or cold conditions.

Some of the harshest battery conditions occur with marine use or extended travel. Duracell Marine & RV batteries have AGM technology which provides extra protection against wave-pounding vibrations or the most demanding road conditions during RV travel. The batteries also safely power electronic accessories (Livewells, GPS systems, hazard lighting, etc.) and offer passengers peace-of-mind, knowing that their electronics are powered.

"The ability to use electronic devices in vehicles is expected by consumers today," said Bob Jacobs, Duracell marketing director-North America. "They count on these electronics for added convenience, comfort and safety in their vehicles. Duracell automotive and marine batteries deliver the performance that these vehicles need no matter how rough the roads or seas they travel. These new battery offerings reaffirm Duracell's commitment to reliability, performance and technological innovation and to keeping consumers connected to the devices they need most at all times."

These power solutions are available at select Meijer stores in Illinois, Indiana and Michigan and will be available at all stores in the beginning of April. They will also be available at West Marine stores in mid to late February throughout the U.S. and Canada. Visit www.driveduracell.com to learn about the full line of products.

These new batteries are being introduced through Duracell's business alliance with East Penn Manufacturing Co. Inc., which was announced in May. The world's largest and most modern single-site, independent battery maker, East Penn Manufacturing makes thousands of different sizes and types of lead-acid batteries, battery accessories and wire and cable products for virtually every application.
By RV Business

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Actuant Reports First Quarter Results, Increases Guidance MILWAUKEE - dBusinessNews.com

Posted: 17 Dec 2009 02:02 AM PST

MILWAUKEE--(BUSINESS WIRE)-- Actuant Corporation (NYSE: ATU) today announced results for its first quarter ended November 30, 2009.

Highlights

Consolidated Results

Segment Results

(US $ in millions)

Three Months EndedNovember 30,

(1) Results for the three months ended November 30, 2009 and 2008 exclude restructuring charges of $0.2 million and $0.1 million, respectively.

(US $ in millions)

Three Months EndedNovember 30,

(2) Results for both three month periods exclude restructuring charges of $0.1 million.

(US $ in millions)

Three Months EndedNovember 30,

(3) Results for the three months ended November 30, 2009 and 2008 exclude restructuring charges of $2.7 million and $0.1 million, respectively.

(US $ in millions)

Three Months EndedNovember 30,

Corporate

Financial Position

Outlook

Conference Call Information

Safe Harbor Statement

About Actuant Corporation

(tables follow)

Adjustments to reconcile net earnings to net cash providedby operating activities:

Changes in operating assets and liabilities, excludingthe effects of the business acquisitions

Note: The total of the individual quarters may not equal the annual total due to rounding.

IMPAIRMENT CHARGES, DEBT EXTINGUISHMENT CHARGES, AND DISCONTINUED OPERATIONS (1)

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Governor Comments on State of State's Economy - WIBC.com

Posted: 16 Dec 2009 09:23 PM PST

By Eric Berman
12/16/2009

Governor Daniels is accentuating the positive in the Hoosier economy, as what he calls a "hard year" draws to a close.

Listen:

Indiana's jobless rate is near 10 percent, but still below any of its neighbors. Daniels calculates if auto sales were to rebound, Indiana would be among the first of the Rust Belt states to move into recovery. He points to northern Indiana's RV industry as a possible leading indicator, with companies starting to hire more workers, six months after layoffs in the industry gave Elkhart County the nation's worst jobless rate.

"It is very clear that when this is over, we'll have a bigger share of the RV market than when we did before it started, because companies have closed elsewhere and they're bringing the work that remains to Indiana," Daniels says.

In a wide-ranging interview at the governor's mansion, Daniels argues that should be the state's strategy across the board: making Indiana as business-friendly as possible, to be ready to sprint to the front of the pack when the economy picks up. He says 50 companies cutting back in the recession have opted to close plants elsewhere and consolidate here.

And Daniels predicts the construction jobs brought by the 10-year Major Moves highway program will be a secondary benefit. The big payoff, he argues, will be the businesses which congregate along the new roads, at a time when states such as Michigan and New York have been forced to zero out their highway budgets.

But Daniels says he's less optimistic about a quick national economic recovery. And, he contends, the national climate is the biggest factor in Indiana's, hamstringing the market for the state's manufacturing-heavy economy.

Daniels says he'll continue to hold the line against any tax increase, with further steps to keep the state budget balanced coming through spending cuts. The state has portrayed the cuts so far as moves toward doing as much with less, but Daniels says cuts in services remain possible.

"It's a matter of prioritization," Daniels says. "Government does a lot of things that are good to do, nice to do, and there are some things that it simply must do. At times like this, as any family or business would, you sort the nice-to-do's from the must-do's."

Daniels says he still hopes to make the $300 million-plus in school funding cuts announced Tuesday as painless as possible. He calls Hoosier schools "the luckiest in America," noting 39 states cut school spending earlier and deeper.

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