JBT Corporation Reports Full-Year 2018 Results

CHICAGO, Feb. 25, 2019 /PRNewswire/ --

Fourth Quarter 2018 Highlights:

• Revenue of $537 million, up 11 percent from the fourth quarter of 2017
• Operating income of $59 million, including $14 million of restructuring expense 
• Total segment operating profit of $83 million, a gain of 28 percent from the fourth quarter of 2017
• Diluted earnings per share from continuing operations of $1.34 versus $0.61; Adjusted diluted earnings per share of $1.65 versus $1.10 in the fourth quarter of 2017
• Inbound orders of $476 million, ahead 18 percent; backlog up 14 percent from the fourth quarter of 2017

2019 Outlook:

• Expects 2019 revenue of $1.9 billion
• Anticipates FoodTech operating margins of 13.25 – 14.0 percent; AeroTech operating margins of 12.5 – 13.0 percent
• Projects 2019 earnings per share of $3.90 – $4.10 or $4.20 – $4.40 on an adjusted basis

JBT Corporation (NYSE: JBT), a leading global technology solutions provider to high-value segments of the food & beverage industry, today reported results for the fourth quarter and full-year 2018.

"We ended 2018 on a strong note, with margins, cash flow, and order rates that exceeded our expectations," said Tom Giacomini, Chairman, President, and Chief Executive Officer. "With a favorable long-term outlook for our end markets, we expect growth to continue in 2019. Operationally, improvements underway enhance our competitive position and support significant margin expansion in 2019 and 2020."   

Fourth quarter 2018 revenue increased 11.1 percent from the year-ago period, comprised of 4.6 percent organic growth, 3.2 percent growth from acquisitions, and a 5.6 percent benefit from the new ASC 606 revenue recognition standard, offset by a 2.3 percent unfavorable foreign exchange translation impact. Operating income was $59.1 million in the fourth quarter of 2018, including restructuring expense of $14.2 million. Segment operating profit increased 28 percent year over year with a 200 basis point margin expansion to 15.4 percent.

Diluted earnings per share from continuing operations was $1.34 for the fourth quarter of 2018 compared with $0.61 in the fourth quarter of 2017. Adjusted earnings per share, excluding restructuring expense and charges associated with passage of the "Tax Cuts and Jobs Act", was $1.65 compared with $1.10 in the year-ago period. Fourth quarter 2018 earnings per share also included a $0.07 benefit from the transition to ASC 606 and a $0.10 benefit from lower tax rates.

Full-Year 2018

Revenue of $1.9 billion increased 17.4 percent from 2017, with gains of 6.5 percent organically, 3.1 percent from acquisitions, and 7.8 percent from ASC 606. Operating income – which included restructuring expense of $47.0 million in 2018 and $1.7 million in 2017 – was unchanged year-over-year at $143.8 million. Total segment operating profit increased 23 percent.

Diluted earnings per share from continuing operations was $3.24 for 2018 compared to $2.58 for 2017. Adjusted diluted earnings per share from continuing operations, excluding restructuring expense and charges associated with passage of the "Tax Cuts and Jobs Act", was $4.28 for 2018 compared with $3.10 for 2017. Earnings per share in 2018 also included a $0.64 benefit from ASC 606 and a $0.23 benefit from lower tax rates, partially offset by a $0.10 negative impact from foreign exchange translation. 

Orders and Backlog

Fourth quarter 2018 orders increased 18 percent from the year-ago period, with a gain of 20 percent at FoodTech and 12 percent at AeroTech. For 2018, inbound orders of $1.9 billion increased 14 percent from 2017, reflecting gains of 10 percent at FoodTech and 24 percent at AeroTech. Backlog expanded 14 percent from December 31, 2017.

Restructuring Programs

"We have made excellent progress on the restructuring program we announced in 2018, capturing benefits ahead of schedule with savings of $7 million for the year," stated Brian Deck, Executive Vice President and Chief Financial Officer.

In addition to the $47 million restructuring expense booked in 2018, the Company plans to incur additional restructuring expense totaling $10 – $15 million in 2019. As a result of the restructuring activities taken in 2018 and 2019, the Company expects to achieve incremental benefits of $20 million in 2019 and $28 million in 2020 bringing total expected savings to $55 million.    

Acquisitions

In February 2019, JBT completed the acquisition of LEKTRO, Inc., a manufacturer of electric aviation ground support equipment. "The addition of LEKTRO adds a complementary line of tractors and improves our competitive position in the rapidly growing market for emission-free equipment," said Tom Giacomini.    

2019 Outlook 

For 2019, the Company anticipates organic growth of 4 percent, growth from completed acquisitions of 2 – 3 percent, partially offset by a 1 percent headwind from foreign exchange translation, adding to 5 – 6 percent growth. However, GAAP revenue is expected to be flat year over year, reflecting the $127 million of ASC 606 benefit from previously recognized revenue included in 2018 results. 

JBT forecasts FoodTech operating margins of 13.25 – 14.0 percent, AeroTech operating margins of 12.5 – 13.0 percent, and diluted earnings per share from continuing operations in the range of $3.90 – $4.10 in 2019, or an adjusted $4.20 – $4.40.

For the first quarter of 2019, JBT anticipates revenue of $375 million – $395 million and diluted earnings per share from continuing operations of $0.30 – $0.34, or an adjusted $0.44 – $0.48.

2018 Earnings Conference Call

A conference call is scheduled for 10:00 a.m. ET on Tuesday, February 26, 2019 to discuss 2018 financial results. Participants may access the conference call by dialing (833) 238-7952 in the U.S. and Canada or (647) 689-4200 for international callers and using conference ID 4523989, or through the Investor Relations link on our website at http://ir.jbtcorporation.com. An online audio replay of the call will be available on the Company's Investor Relations website at approximately 1:30 p.m. ET on February 26, 2019.

JBT Corporation (NYSE: JBT) is a leading global technology solutions provider to high-value segments of the food & beverage industry with focus on proteins, liquid foods and automated system solutions. JBT designs, produces and services sophisticated products and systems for multi-national and regional customers through its FoodTech segment. JBT also sells critical equipment and services to domestic and international air transportation customers through its AeroTech segment. JBT Corporation employs approximately 5,900 people worldwide and operates sales, service, manufacturing and sourcing operations in more than 25 countries. For more information, please visit www.jbtc.com.

This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are information of a non-historical nature and are subject to risks and uncertainties that are beyond the Company's ability to control. These risks and uncertainties are described under the caption "Risk Factors" in the Company's most recent Annual Report on Form 10-K filed by the Company with the Securities and Exchange Commission that may be accessed on the Company's website. The Company cautions shareholders and prospective investors that actual results may differ materially from those indicated by the forward-looking statements.

Investors & Media:      Megan Rattigan           +1 312 861 6048