Tue, Jun 25, 8:49 PM (118 days ago)
Enerpac Tool Group Corp. reported a decline in net sales to $150 million for Q3 2024, a 4% decrease from Q3 2023. The decline is attributed to a $1 million impact from currency exchange rates and a $7 million impact from the divestiture of the Cortland Industrial business. Despite this, organic sales grew 1%. Gross profit margin improved to 52%, driven by operational improvements and favorable sales mix. Operating profit increased to $33 million, up from $25 million in Q3 2023, primarily due to reduced SG&A expenses. For the nine months ended May 31, 2024, net sales were $431 million, down 1.6% from the same period in 2023. However, organic sales grew 3%. Gross profit margin improved to 52%, up from 49%. Operating profit increased to $92 million, up from $52 million, driven by a $31 million reduction in SG&A expenses. The ASCEND transformation program is expected to deliver $50-$60 million in annual operating profit by the end of fiscal 2024, with $10-$15 million in related costs anticipated for fiscal 2024. The company maintains a strong liquidity position with $132 million in cash and $399 million available under its credit facility.