By a News Reporter-Staff News Editor at Energy Weekly News -- Powell Industries, Inc. (NASDAQ: POWL) ("Powell"), a leading supplier of custom engineered solutions for the distribution and control of electrical energy, announced results for the fiscal 2014 first quarter ended December 31, 2013.
Revenues for the first quarter of fiscal 2014 were $171.9 million compared to revenues of $146.9 million for the first quarter of fiscal 2013. Net income for the first quarter of fiscal 2014 was $8.3 million or $0.68 per diluted share, compared to net income of $7.4 million, or $0.62 per diluted share, in the first quarter of fiscal 2013. On January 15, 2014, subsequent to the first quarter of fiscal 2014, Powell closed the sale of its subsidiary, Transdyn, Inc. and has recorded the first quarter results of Transdyn as discontinued operations. Net income from continuing operations for the first quarter was $7.3 million or $0.60 per diluted share.
Michael A. Lucas, President and Chief Executive Officer, stated, "We are pleased to begin the year with a solid first quarter, with healthy revenue growth and order rates continuing at the pace of recent quarters. During the first quarter, we received orders for several smaller petrochemical projects, and indications point to larger project awards occurring later this year. Activity in the Canadian market continues to be strong, and orders for the first quarter were ahead of our expectations as we began to see the initial results from the investments we made in Canada. We continue to see opportunities in the oil and gas market, particularly in pipeline, petrochemical and LNG projects.
"Although we sold our intelligent transportation business, we retained key strategic elements that will continue to support our customers with electrical power management and industrial control solutions. None of the changes announced this quarter alters our expectations for fiscal 2014 or our positive market view."
New orders from continuing operations in the fiscal 2014 first quarter were $192 million compared to $196 million in the fourth quarter of fiscal 2013 and compared to $251 million in the first quarter of fiscal 2013. The Company's backlog for continuing operations as of December 31, 2013 was $455 million compared to $438 million as of September 30, 2013 and compared to $469 million at the end of last year's first quarter.
On December 30, 2013, Powell amended a supply agreement with one of its major customers, which resulted in a deferred credit of $5.2 million, net of tax, which will be recognized over the four year life of the amended agreement, which began January 1, 2014.
On January 15, 2014, subsequent to the first quarter of fiscal 2014, Powell closed the sale of its subsidiary, Transdyn, Inc. to Kapsch TrafficCom, a global provider of electronic toll collection systems, for a price of $16 million subject to post-closing working capital adjustments. Transdyn had been reported in Powell's Process Control Systems business segment. Powell retained important strategic operations from its Process Control Systems business segment that serve the key markets of oil and gas, industrial, utility and traction power, and these operations have been integrated into the Electrical Power Products segment.
Keywords for this news article include: Energy, Oil & Gas, Oil And Gas, Powell Industries Inc.
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