JBT Corporation Reports Second Quarter Results

JBT AeroTech's revenue of $83.7 million decreased 29 percent from $117.1 million in the same period of 2008, primarily driven by continued weak demand for GSE.

CHICAGO, Aug. 3 /PRNewswire-FirstCall/ — JBT Corporation (NYSE: JBT), a leading global technology solutions provider to the food processing and air transportation industries, today reported second quarter 2009 results.

Second quarter 2009 revenue of $230.2 million declined 17 percent from second quarter 2008 or 11 percent in constant currencies. Segment operating profit was $22.5 million, down 10 percent from the prior-year quarter. During the quarter, the company incurred approximately $1.3 million in restructuring charges from cost reduction actions taken to respond to the continued economic slowdown. Excluding these charges, segment operating margin improved 130 basis points to 10.3 percent over the same period a year ago. Diluted earnings per share from continuing operations for the second quarter were $0.34, representing a 17 percent decline from $0.41 diluted earnings per share from continuing operations for the prior-year period (calculated on a pro forma basis to include comparable debt and interest expense) and a 28 percent decline from the prior-year second quarter GAAP diluted earnings per share of $0.47. Restructuring charges and negative translation impact from the stronger U.S. dollar accounted for $0.07 of the decline. Cash generated from operating activities totaled $21.8 million for the quarter. Debt, net of cash, was $132.4 million down from $143.1 million in the first quarter 2009.

"We posted strong quarterly results as our operations continue to perform well in spite of a challenging global economic environment," said Charlie Cannon, Chairman and Chief Executive Officer. "Our second quarter revenue and earnings were, as expected, seasonally stronger than the first quarter. While we are focused on serving our customers and managing costs to match demand, we continue to invest for the future. In May, we closed our second acquisition that expands our JBT FoodTech product offerings and positions us for future growth. Additionally, our continued strong cash flow generation allowed us to pay down debt and fund the Double D acquisition, our second quarter dividend, and an initial pension contribution. However, looking ahead, we expect the operating environment will remain difficult for the second half of 2009 and possibly into 2010. As a result, we are currently expecting a sequentially weaker third quarter, followed by a seasonally stronger fourth quarter."

JBT FoodTech

JBT FoodTech's second quarter revenue of $145.5 million declined 8 percent from $158.5 million in the same period of 2008, primarily due to generally stronger U.S. dollar exchange rates than in the prior-year quarter. In constant currencies, revenue was up slightly reflecting delivery of two large orders, partially offset by continued weak demand in Europe and Latin America. JBT FoodTech's operating profit of $16.5 million was up 15 percent from $14.4 million in the prior-year quarter, driven by lower expenses resulting from aggressive cost reduction and improved margins, partially offset by restructuring charges. Excluding the restructuring charges, operating margin was 11.8 percent, up 270 basis points from the prior-year quarter margin of 9.1 percent. Inbound orders totaled $113.5 million for the quarter, a decline of 23 percent from the same period a year ago and 14 percent in constant currencies, reflecting continued weakness in Europe and Latin America. However, inbound orders were 14 percent higher than the first quarter of 2009. Backlog of $125.4 million was down 19 percent from $154.7 million in the prior-year quarter. In constant currencies, backlog declined 13 percent from the prior-year quarter.

JBT AeroTech

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