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.

JBT AeroTech's second quarter 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 ground support equipment as a result of lower passenger and freight traffic in the airline and airfreight industries. JBT AeroTech's operating profit of $6.0 million declined 43 percent from $10.6 million in the prior-year quarter due to lower revenue and restructuring charges, partially offset by lower expenses from cost reduction initiatives and a favorable product mix. Excluding the restructuring charges, operating margin of 7.9 percent declined 120 basis points from the prior-year quarter. Inbound orders totaled $68.8 million, down 30 percent from last year's second quarter, driven primarily by lower demand in ground support equipment. Inbound orders declined 22 percent from first quarter 2009, which included a $28 million Halvorsen order received in January 2009. Excluding the Halvorsen order, inbound orders improved 14 percent sequentially. Backlog of $142.6 million was down 24 percent from $187.6 million in the prior-year quarter.

Corporate Items

Corporate expense in the quarter was $4.0 million, an increase of $1.0 million versus the prior-year quarter, reflecting higher stand-alone corporate costs that are representative of the company's current run rate.

Other expense, net, of $1.4 million was $1.3 million lower than the prior-year quarter. In 2008, the company reported $1.3 million in higher costs allocated from JBT's former parent company, FMC Technologies Inc.

Cash generated from operating activities in the quarter was $21.8 million. The company ended the quarter with debt, net of cash, of $132.4 million, reduced from $143.1 million in first quarter of 2009 reflecting repayment of a portion of outstanding borrowings under the company's revolving credit facility. During the quarter, cash was utilized to pay a quarterly dividend of $2.0 million, an initial pension contribution of $2.1 million and the previously announced Double D acquisition. Net interest expense was $2.3 million in the second quarter of 2009.

The effective tax rate from continuing operations for the quarter was 34.7 percent, reflecting half of a percentage point increase in the estimated annual rate due to an unfavorable mix of earnings from higher tax jurisdictions.

Year-to-date capital expenditures totaled $9.8 million and depreciation and amortization totaled $10.6 million.

2009 Outlook

Looking forward, the company expects a continued challenging economic environment in the second half of 2009 that will likely continue into 2010. The company expects 2009 diluted earnings per share to be in the range of $0.95-$1.15. The lower end of the range assumes no pickup in demand for either JBT AeroTech ground support equipment or JBT FoodTech European and Latin American markets. The upper end of the range assumes a modest seasonal recovery in demand for JBT AeroTech ground support equipment and improvement in the European market for JBT FoodTech product lines.

Second Quarter Earnings Conference Call

The company will hold a conference call at 9:00 AM EDT Tuesday, August 4, 2009, to discuss the second quarter 2009 results. The call can be accessed live by dialing (866) 394-6382 or (702) 696-4650 and using conference ID 14621196, or through the Investor Relations link on JBT Corporation's website at http://ir.jbtcorporation.com. A replay of the call will be available through August 11, 2009 and can be accessed by dialing (800) 642-1687 or (706) 645-9291 and referencing passcode 14621196. A rebroadcast also will available on the company's Investor Relations website.

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