JBT Corporation, a leading global technology solutions provider to high-value segments of the food & beverage industry, on July 25 reported results for the second quarter of 2018.
"JBT posted better than expected revenue growth and margin expansion as well as record orders in the second quarter, putting us on track to deliver double-digit growth in revenue and adjusted earnings for full-year 2018," said Tom Giacomini, Chairman, President and Chief Executive Officer.
Second quarter 2018 revenue increased 27 percent from the second quarter of 2017, including growth of 14 percent organically and 4 percent from acquisitions, a 1 percent foreign exchange benefit, and an 8 percent benefit from the new revenue recognition standard, ASC 606, adopted January 1.
Second quarter 2018 operating income of $42.2 million – which included a restructuring expense of $8.5 million – increased 44 percent from the year-ago period. Total segment operating profit of $62.1 million increased 48 percent, including 18 percent from ASC 606. Segment operating profit margins expanded 170 basis points year over year and 540 basis points sequentially.
Diluted earnings per share from continuing operations was $1.04 for the second quarter of 2018 compared to $0.57 for the second quarter of 2017.
Adjusted diluted earnings per share from continuing operations was $1.24 for the second quarter of 2018 excluding the restructuring expense. Second quarter 2018 results included a $0.17 per share benefit from ASC 606 and a $0.15 per share discrete tax benefit associated with accounting rules for stock compensation costs.
Orders and backlog
For the second quarter of 2018, inbound orders of $530 million increased 27 percent, with record levels at both FoodTech and AeroTech. Backlog expanded 15 percent.
Restructuring
In the second quarter of 2018, JBT recorded a restructuring expense of $8.5 million, part of the previously announced $50 million improvement program to unlock the benefits of the Company's expanded global scale.
Acquisitions
On July 12, JBT announced the acquisition of FTNON, a leading provider of equipment and solutions for the fresh produce, ready meals, and pet food markets. "We are pleased to add additional, complementary capabilities to JBT's customer relationships," stated Giacomini. "Moreover, FTNON provides entry into the fast-growing market for ready-to-eat fresh produce and offers labor-saving robotic technology we plan to apply across the protein and liquid food segments of the food industry."
2018 outlook
For full-year 2018, JBT maintains projected diluted earnings per share from continuing operations of $2.80 - $3.00, or $3.95 - $4.15 adjusted for restructuring charges, while absorbing the $0.07 per share dilutive impact from the acquisition of FTNON.
For the third quarter of 2018, the Company expects similar results to the second quarter, absent the discrete tax benefit.
