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JBT Corporation Reports Strong Second Quarter 2014 Results and Raises Full Year 2014 Guidance

Companies mentioned in this article: JBT Corporation

CHICAGO, Aug. 6, 2014 /PRNewswire/ --

Highlights:

    --  Revenue of $248 million, up 9 percent year over year
    --  Segment operating profit of $29 million, up 21 percent year over year
    --  Diluted earnings per share from continuing operations of $0.38 vs. $0.30
        in the second quarter of 2013
    --  Adjusted diluted earnings per share from continuing operations of $0.45
    --  Full-year 2014 adjusted diluted earnings per share guidance raised to
        $1.45 - $1.55 ($0.95 - $1.05 on a GAAP basis), compared to previous
        guidance of $1.35 - $1.50
    --  On July 1, 2014 completed acquisition of ICS Solutions, expanding the
        Company's liquid foods portfolio and recurring revenue stream

JBT Corporation (NYSE: JBT), a leading global technology solutions provider to the food processing and air transportation industries, today reported results for the second quarter of 2014.

Revenue for the second quarter was $247.6 million, an increase of 9 percent from the prior-year quarter. Segment operating profit increased 21 percent, with higher operating margins at JBT FoodTech and a doubling of operating margins at JBT AeroTech. Corporate expense in the quarter was $9.1 million, including $2.1 million in management succession and certain consulting costs. In addition, the Company recorded a $1.0 million restructuring charge. Diluted earnings from continuing operations was $0.38 per share in the second quarter of 2014 compared with $0.30 per share in the year-ago period. Excluding restructuring charges and management succession and consulting costs, adjusted diluted earnings per share from continuing operations was $0.45.

Second quarter inbound orders of $209.2 million declined 16% year over year, largely due to delays in several orders in both business segments. The Company expects to receive these orders in the back half of the year. Backlog of $401.0 million increased 14% over the prior year period.

"JBT's business remains healthy and we posted another solid performance in the second quarter of 2014," said Tom Giacomini, Chairman, President and Chief Executive Officer. "Moreover, we are implementing our Next Level strategy, establishing a culture that drives continuous improvement and growth of our businesses."

On July 1, 2014, the Company acquired ICS Solutions, a worldwide leader in the engineering, installation, and servicing of high-capacity food preservation equipment. ICS' large worldwide installed base provides a strong recurring revenue stream. Additionally, with ICS' complementary product line, JBT now offers the most complete range of in-container sterilization solutions available to the beverage, dairy, and canning industries. "This acquisition furthers our Next Level strategy, which includes making value-creating acquisitions in Liquid Foods and building the profitable aftermarket parts and service business," added Giacomini.

2014 Outlook
For the full year, the Company raised its projected adjusted diluted earnings per share to a range of $1.45 - $1.55, compared to the previous estimate of $1.35 - $1.50. The projections exclude restructuring costs of an estimated $12 - $13 million, an estimated $6.5 million in management succession costs, and about $2.5 million in pricing and strategy costs. On a GAAP basis, diluted earnings per share is expected to be in the range of $0.95 - $1.05.

The Company continues to anticipate revenue growth in the mid-single digit range for 2014. It now expects total segment operating margin to improve slightly relative to 2013. The Company expects full-year corporate expense to be greater than previously estimated due to setup costs associated with the Company's U.S. back-office consolidation initiative and a higher level of M&A activity. Excluding management succession and consulting costs, corporate expense is projected to be closer to the upper end of the previously communicated range of $25 to $27 million for 2014. Anticipated savings of over $3 million from restructuring actions and an additional $3 million in benefits from operational excellence initiatives for the year will fund planned spending on the Company's strategic initiatives.

Second Quarter 2014 Earnings Conference Call
A conference call is scheduled for 10:00 a.m. ET on Thursday, August 7, 2014 to discuss the second quarter results. Participants may access the conference call by dialing (877) 235-3250 or (706) 643-5005 and using conference ID 78020406, or through the Investor Relations link on JBT Corporation's 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 August 7, 2014.

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 3,400 people worldwide and operates sales, service, manufacturing and sourcing operations located in over 25 countries. For more information, please visit www.jbtcorporation.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 2013 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.


                                                                    JBT CORPORATION
                                                                    ---------------

                                                      CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                                      -------------------------------------------

                                                  (Unaudited and in millions, except per share data)



                                     Three Months Ended                                         Six Months Ended

                                           June 30,                                                  June 30,
                                           --------                                                  --------

                                                     2014                                 2013                         2014        2013
                                                     ----                                 ----                         ----        ----


    Revenue                                        $247.6                               $226.9                       $445.6      $412.6

    Cost of sales                                 179.3                                167.8                        325.3       303.2
                                                  -----                                -----                        -----       -----


                  Gross profit                     68.3                                 59.1                        120.3       109.4


    Selling, general and
     administrative expense                        44.9                                 40.5                         88.5        81.4

    Research and development
     expense                                        3.7                                  3.7                          7.2         6.9

    Restructuring expense                           1.0                                    -                        11.2           -

    Other (income) expense, net                     0.2                                  0.1                          0.1       (0.3)
                                                    ---                                  ---                          ---        ----


                  Operating income                 18.5                                 14.8                         13.3        21.4


    Net interest expense                            1.5                                  1.6                          2.8         3.0
                                                    ---                                  ---                          ---         ---

    Income from continuing
     operations before income taxes                17.0                                 13.2                         10.5        18.4

    Provision for income taxes                      5.6                                  4.4                          3.8         5.5
                                                    ---                                  ---                          ---         ---

    Income from continuing
     operations                                    11.4                                  8.8                          6.7        12.9

    Loss from discontinued
     operations, net of taxes                         -                                 0.2                          0.1         0.2
                                                    ---                                 ---                          ---         ---

                  Net income                        $11.4                                 $8.6                         $6.6       $12.7



    Basic earnings per share:

              Income from
               continuing
               operations                           $0.39                                $0.30                        $0.23       $0.44

              Loss from discontinued
               operations                             -                              (0.01)                           -     (0.01)
                                                    ---                               -----                          ---      -----

              Net income                            $0.39                                $0.29                        $0.23       $0.43



    Diluted earnings per share:

              Income from
               continuing
               operations                           $0.38                                $0.30                        $0.23       $0.44

              Loss from discontinued
               operations                             -                              (0.01)                      (0.01)     (0.01)
                                                    ---                               -----                        -----       -----

              Net income                            $0.38                                $0.29                        $0.22       $0.43



    Weighted average shares
     outstanding

              Basic                                29.5                                 29.2                         29.5        29.2
                                                   ====                                 ====                         ====        ====

              Diluted                              29.8                                 29.6                         29.8        29.6
                                                   ====                                 ====                         ====        ====



                        JBT CORPORATION
                        ---------------

                  NON-GAAP FINANCIAL MEASURE
                  --------------------------



    The results for the three and six months ended June 30, 2014 and 2013
     include several items that affect the comparability of our results.
     These include significant expenses that are not indicative of our on-
     going operations as detailed in the table below:

                         Three Months Ended  Six Months Ended

                             June 30,         June 30,
                             --------         --------

    (In
     millions)                          2014               2013       2014        2013
                                        ----               ----       ----        ----


     Income
     from
     continuing
     operations
     as
     reported                       $11.4               $8.8       $6.7       $12.9


    Non-
     GAAP
     adjustments:

           Restructuring
           expense                    1.0                  -      11.2           -

           Management
           succession
           costs                      1.1                  -       2.6         0.3

           Strategy
           and
           pricing
           consulting                 1.0                  -       1.9           -


     Impact
     on
     tax
     provision
     from
     Non-
     GAAP
     adjustments                    (1.1)                 -     (4.8)      (0.1)
                                     ----                ---      ----        ----


     Adjusted
     income
     from
     continuing
     operations                     $13.4               $8.8      $17.6       $13.1
                                    =====               ====      =====       =====


    (In
     millions,
     except
     EPS)


     Income
     from
     continuing
     operations
     as
     reported                        11.4                8.8        6.7        12.9
                                     ----                ---        ---        ----

    Total
     shares
     and
     dilutive
     securities                      29.8               29.6       29.8        29.6
                                     ----               ----       ----        ----

     Diluted
     earnings
     per
     share
     from
     continuing
     operations                     $0.38              $0.30      $0.23       $0.44
                                    =====              =====      =====       =====


     Adjusted
     income
     from
     continuing
     operations                      13.4                8.8       17.6        13.1
                                     ----                ---       ----        ----

    Total
     shares
     and
     dilutive
     securities                      29.8               29.6       29.8        29.6
                                     ----               ----       ----        ----

     Adjusted
     diluted
     earnings
     per
     share
     from
     continuing
     operations                     $0.45              $0.30      $0.59       $0.44
                                    =====              =====      =====       =====


    The above table contains non-GAAP
     financial measures, including
     adjusted income from continuing
     operations and adjusted diluted
     earnings per share. The non-GAAP
     measures exclude certain amounts for
     the purpose of determining adjusted
     income from continuing operations
     and adjusted diluted earnings per
     share. Adjusted income from
     continuing operations and adjusted
     diluted earnings per share are
     intended to provide an indication of
     our underlying operating results and
     to enhance investors' overall
     understanding of our financial
     performance by eliminating the
     effects of certain items that are
     not comparable from one period to
     the next. In addition, this
     information is used as a basis for
     evaluating company performance and
     for the planning and forecasting of
     future periods. This information is
     not intended to be considered in
     isolation or as a substitute for
     financial measures prepared in
     accordance with GAAP.



                                               JBT CORPORATION
                                               ---------------

                                            BUSINESS SEGMENT DATA
                                            ---------------------

                                         (Unaudited and in millions)


                                              Three Months Ended                 Six Months Ended

                                              June 30,                       June 30,
                                              --------                       --------

                                             2014                     2013                   2014            2013
                                             ----                     ----                   ----            ----

    Revenue
    -------


    JBT FoodTech                             $173.7                   $162.3                 $309.1          $274.2

    JBT AeroTech                             74.1                     65.9                  136.7           136.6

    Other revenue (1) and
     intercompany eliminations              (0.2)                   (1.3)                 (0.2)            1.8
                                             ----                     ----                   ----             ---

    Total revenue                            $247.6                   $226.9                 $445.6          $412.6





    Income before income taxes
    --------------------------


    Segment operating profit
    ------------------------

    JBT FoodTech                              $23.4                    $21.2                  $34.8           $29.1

    JBT AeroTech                              5.2                      2.4                    7.6             6.6
                                              ---                      ---                    ---             ---

    Total segment operating profit           28.6                     23.6                   42.4            35.7


    Corporate expense (2)                   (9.1)                   (8.8)                (17.9)         (14.3)

    Restructuring expense          (1.0)                       -                (11.2)              -
                                    ----                      ---                 -----             ---


    Operating income                         18.5                     14.8                   13.3            21.4


    Net interest expense                      1.5                      1.6                    2.8             3.0
                                              ---                      ---                    ---             ---


    Income from
     continuing
     operations before
     income taxes                             $17.0                    $13.2                  $10.5           $18.4

    (1) Other revenue is comprised of
     certain gains and losses related to
     foreign exchange exposure.


    (2) Corporate expense includes
     corporate staff costs, stock-based
     compensation, pension and other
     postretirement benefit expenses not
     related to service, LIFO
     adjustments, foreign exchange gains
     and losses, and the impact of
     unusual or strategic events not
     representative of segment
     operations.


                                       JBT CORPORATION
                                       ---------------

                                    BUSINESS SEGMENT DATA
                                    ---------------------

                                 (Unaudited and in millions)


                                      Three Months Ended                 Six Months Ended

                                      June 30,                       June 30,
                                      --------                       --------

                                     2014                     2013                   2014     2013
                                     ----                     ----                   ----     ----

    Inbound Orders
    --------------


    JBT FoodTech                     $138.2                   $162.9                 $298.7   $330.9

    JBT AeroTech                     71.2                     88.1                  171.6    149.1

    Other and intercompany
     eliminations                   (0.2)                   (1.3)                 (0.2)     1.8
                                     ----                     ----                   ----      ---


    Total inbound orders             $209.2                   $249.7                 $470.1   $481.8





                                      June 30,
                                      --------

                            2014                     2013
                            ----                     ----

    Order Backlog
    -------------


    JBT FoodTech                     $203.3                   $226.1

    JBT AeroTech           197.7                    126.2
                           -----                    -----


    Total order backlog              $401.0                   $352.3


                                  JBT CORPORATION
                                  ---------------

                       CONDENSED CONSOLIDATED BALANCE SHEETS
                       -------------------------------------

                            (Unaudited and in millions)



                                                June 30,             December 31,

                                                              2014                   2013
                                                              ----                   ----



    Cash and cash
     equivalents                                               $63.7                  $29.4

    Trade receivables, net                                   158.3                  186.4

    Inventories                                              143.4                  117.6

    Other current assets                                      69.1                   63.2
                                                              ----                   ----

         Total current assets                                434.5                  396.6


    Property, plant and equipment,
     net                                                     136.8                  132.7

    Other assets                                              86.0                   91.9

    Total assets                                              $657.3                 $621.2




    Short term debt and
     current portion of
     long-term debt                                             $4.4                   $6.3

    Accounts payable, trade and
     other                                                    86.2                   88.1

    Advance payments and progress
     billings                                                 83.9                   88.3

    Other current liabilities                                107.2                   94.9
                                                             -----                   ----

         Total current liabilities                           281.7                  277.6


    Long-term debt, less current
     portion                                                 136.8                   94.1
     Accrued pension and other
      postretirement benefits, less
      current portion
                                                              40.9                   52.5

    Other liabilities                                         39.8                   42.6


    Common stock and paid-in
     capital                                                  69.9                   68.0

    Retained earnings                                        147.7                  146.5

    Accumulated other comprehensive
     loss                                                   (59.5)                (60.1)

         Total stockholders' equity                          158.1                  154.4
                                                             -----                  -----

    Total liabilities and
     stockholders' equity                                     $657.3                 $621.2


                                JBT CORPORATION
                                ---------------

                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                -----------------------------------------------

                          (Unaudited and in millions)


                                                           Six Months Ended

                                                          June 30,
                                                          --------

                                                         2014                  2013
                                                         ----                  ----


    Cash Flows From Operating
     Activities:

         Income from
          continuing
          operations                                       $6.7                 $12.9


    Adjustments to reconcile
     income to cash provided
     by operating activities:

         Depreciation and
          amortization                                   11.6                  12.5

         Other                                            6.9                   2.2


    Changes in operating
     assets and liabilities:

         Trade accounts
          receivable, net                                28.4                  39.3

         Inventories                                   (24.0)               (33.4)

         Accounts payable, trade
          and other                                     (0.7)                (6.8)

         Advance payments and
          progress billings                             (3.9)                 19.1

         Other -assets and
          liabilities, net                              (4.7)               (15.3)
                                                         ----                 -----


    Cash provided by
     continuing operating
     activities                                          20.3                  30.5
                                                         ----                  ----


    Cash required by
     discontinued operating
     activities                                         (0.3)                (0.7)


    Cash Flows From Investing
     Activities:

         Acquisitions                                   (1.7)                    -

         Capital expenditures                          (17.1)               (14.1)

         Other                                            1.1                   1.2


    Cash required by
     continuing investing
     activities                                        (17.7)               (12.9)
                                                        -----                 -----


    Cash Flows From Financing
     Activities:

         Net proceeds (payments)
          on credit facilities                           40.6                (85.7)

         Dividends paid                                 (5.5)                (4.9)

         Other                                          (1.7)                (2.3)
                                                         ----                  ----


    Cash provided (required)
     by financing activities                             33.4                (92.9)
                                                         ----                 -----


    Effect of foreign
     exchange rate changes on
     cash and cash
     equivalents                                        (1.4)                (2.0)
                                                         ----                  ----


    Increase (decrease) in
     cash and cash
     equivalents                                         34.3                (78.0)


    Cash and cash
     equivalents, beginning
     of period                                           29.4                  99.0
                                                         ----                  ----


    Cash and cash
     equivalents,
     end of period                                        $63.7                 $21.0

SOURCE JBT Corporation