JBT Corporation Reports Fourth Quarter 2010 Results

CHICAGO, March 1, 2011 - JBT Corporation (NYSE: JBT), a leading global technology solutions provider to the food processing and air transportation industries, today reported fourth quarter 2010 results. 

Revenue for the quarter was $286.6 million, up 17 percent from the prior-year quarter.  Gross profit margin increased 100 basis points to 25.6 percent from the same period last year.  Fourth quarter diluted earnings per share from continuing operations were $0.56, up 51 percent from $0.37 for the same period a year ago.  During the quarter, the Company benefitted from $2.0 million in lower LIFO reserves due to lower inventory levels and less inflation than previously assumed.  Additionally, the Company recorded restructuring charges of $2.8 million in connection with its initiatives to continue to reduce operating costs.  The net impact of these two items was a reduction of $0.02 in diluted earnings per share.  Operating income as a percent of revenue increased 280 basis points in the fourth quarter to 9.9 percent, driven primarily by improved profitability from higher volume.  Fourth quarter inbound orders of $231.1 million and backlog of $286.8 million increased from the prior-year quarter by 19 percent and 36 percent, respectively.  Debt, net of cash, was $133.4 million at quarter end, essentially unchanged from the third quarter of 2010.

Full-year revenue of $880.4 million was up five percent versus 2009.  Gross profit margin of 26.2 percent was flat versus 2009.  The Company recorded $3.7 million in restructuring charges during 2010 versus $3.9 million in 2009.  Operating income as a percent of revenue increased 70 basis points to 7.6 percent.  Full-year operating income was $67.1 million, up 16 percent from last year.  Full-year diluted earnings per share from continuing operations were $1.30, a 13 percent increase compared to 2009.

“We are very pleased with our strong finish in 2010.  Our fourth quarter results, which are typically our strongest of the year, represent record high profits for the Company.  Looking ahead, our order momentum and healthy backlog position us well for another year of solid performance in 2011.  While we expect opportunities in 2011 to be uneven across our regional markets, reflecting the varying degree of economic recovery across those markets, we are cautiously optimistic about our growth prospects,” said Charlie Cannon, Chairman and Chief Executive Officer.

JBT FoodTech

JBT FoodTech’s fourth quarter revenue of $158.9 million declined two percent from the prior-year quarter.  Continued strong demand for freezing and protein processing equipment was more than offset by an unfavorable comparison resulting from the shipment of a number of large sterilization and fruit processing projects in the 2009 quarter totaling over $20 million in revenue.  JBT FoodTech’s operating profit for the quarter was $20.2 million, up 25 percent year-over-year primarily due to favorable project mix, greater contribution from higher margin aftermarket sales and lower expenses, reflecting the absence of non-recurring charges recorded in the prior-year quarter..  Operating profit margin expanded 270 basis points to 12.7 percent when compared to the same period last year.  Fourth quarter inbound orders of $145.4 million increased by 14 percent from the prior-year quarter and 14 percent sequentially from the third quarter of 2010.  Backlog of $103.4 million increased seven percent from the prior-year quarter but declined 12 percent sequentially primarily due to the high level of shipments during the fourth quarter.

JBT AeroTech

JBT AeroTech had a record performance in the fourth quarter, both in revenue and operating profits.  AeroTech’s fourth quarter revenue of $124.9 million increased 47 percent from the prior-year quarter.  A strong rebound in demand for ground support equipment and continued strength in the Company’s gate equipment product lines contributed to the record quarterly revenue.  JBT AeroTech’s operating profit for the quarter was $13.7 million, up 69 percent year-over-year.  Operating profit margin was 11.0 percent, up 140 basis points from the prior-year period, reflecting leverage from higher volume and lower expenses from past restructuring efforts.  Inbound orders totaled $82.9 million, up 24 percent from the prior-year quarter, but down 23 percent sequentially.  Backlog of $183.4 million was up 60 percent year-over-year but down 19 percent sequentially due to record shipments in the quarter.

Corporate Items

Corporate items excluding net interest expense were $5.6 million for the quarter, down $1.2 million from the same period in 2009, primarily driven by lower LIFO expenses and unrealized gains on foreign exchange hedges, partially offset by $2.8 million in restructuring charges recorded in the quarter for the JBT AeroTech operations.

Full-year cash generated from operating activities was $17.6 million, which included the funding of a $10.2 million contribution to the Company’s U.S. pension plan in the third quarter of 2010.  The Company ended the quarter with debt, net of cash, of $133.4 million, essentially unchanged from $132.6 million at the end of the third quarter of 2010.  Net interest expense for the quarter was $1.9 million, a reduction of $0.3 million from the prior-year quarter.

The full-year tax rate from continuing operations was 36.1 percent.

Full-year capital expenditures totaled $24.3 million, and depreciation and amortization totaled $22.9 million.

2011 Outlook

The Company expects continued improvement in market conditions for most product lines, with improvements varying significantly by region.  Due to continued high levels of global economic and political uncertainty, the Company will consider providing full-year earnings guidance when it reports first quarter earnings.  The Company will provide further market updates during tomorrow’s earnings call.

Fourth Quarter Earnings Conference Call

The Company will hold a conference call at 10:00 AM EST on Wednesday, March 2, 2011 to discuss the fourth quarter 2010 results.  The call can be accessed live by dialing (877) 235-3250 or (706) 643-5005 and using conference ID 38830870 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 March 9, 2011 and can be accessed by dialing (800) 642-1687 or (706) 645-9291 and referencing pass code 38830870.  A rebroadcast also will available on the Company’s Investor Relations website.

JBT Corporation (NYSE: JBT) is a leading global technology solutions provider to the food processing and air transportation industries.  JBT Corporation designs, manufactures, tests and services technologically sophisticated systems and products for regional and multi-national industrial food processing customers through its JBT FoodTech segment and for domestic and international air transportation customers through its JBT AeroTech segment.  JBT Corporation employs approximately 3,300 people worldwide and operates sales, service, manufacturing and sourcing operations located in over 25 countries.  For more information, please visit http://www.jbtcorporation.com.

SOURCE JBT Corporation