Luxfer Holdings PLC has announced financial results for its fourth quarter (Q4) and full year, which ended 31st December (2018).
For Q4 the company reported consolidated net sales of $110.9m, down 4.5% from $116.1m due to lower shipments of disaster-relief products related to reduce hurricane activity compared to year ago and an unfavourable foreign currency impact.
The company also saw a GAAP net loss of $8.5m, or $0.31 per share, compared to a net loss of $1m, or $0.04 per share, in the prior-year period.
Luxfer reported an adjusted net income of $11.2m, or $0.40 per diluted share, compared with $6.5m, or $0.24 per diluted share.
“The fourth quarter capped a year of high achievement across our business, including driving commercial excellence, building a high-performance culture, and progressing toward lean operations,”
Alok Maskara, CEO at Luxfer.
“Our focus on customer-driven innovation supported sustainable market share gains. We are also pleased on the progress of our business transformation programme, having achieved more than $9m of net cost savings in our first year of this initiative.”
“With this strong momentum, we are increasing our targeted cost savings to $24m from $20m by 2021. We are now positioned to deliver $15m of further cost reductions over the next three years. In addition, the simplification phrase of our transformation plan is now complete with the transition to domestic issuer status. Taken together, we are well on a path to continually enhance value for all Luxfer shareholders,” said Maskara.
Full year 2018
Consolidated net sales for 2018 increased 10.6% to $487.9m from $441.3m. Net income increased 50.6% to $25m.
GAAP EPS of $0.90 increased 45.2%. Full-year results include pre-tax restructuring, impairment charges and acquisition-related costs totalling $24.9m for 2018.
Adjusted EBITDA increased 34.2% to $79.6m and Adjusted EBITDA margin of 16.3% improved 290 basis points. Improvement in adjusted EBITDA was attributed to volume growth and successful cost reduction efforts that resulted in $9.2m in total savings in 2018.
“Business conditions remain firm, as we begin 2019,” said Maskara.
“Looking ahead, we have multiple opportunities to increase profit margins by driving lean manufacturing and continuing on our transformation journey. Our 2019 sales growth outlook assumes that the strong hurricane-related sales that took place in the first half of 2018 are not likely to recur in 2019. In addition, for 2019, we expect to further improve profitability by exiting lower margin product lines,” Maskara concluded.