FoodTech drives JBT results
JBT Corporation has reported record high revenue and operating profit in its FoodTech division as part of its Q4 and full year results.
JBT FoodTech's fourth quarter revenue of $177.6m and operating profit of $23.4m were record highs, representing increases of 17% and 63%, respectively, from the same period in 2011.
Record fourth quarter sales of freezing, in-container, and fruit and juice processing equipment drove the increase in FoodTech revenue, said the firm.
Q4 report
FoodTech fourth quarter operating profit margin expanded to 13%. Inbound orders in the fourth quarter of $152.3m increased 24% from the same period last year, driven by demand for in-container processing, freezing and protein processing equipment.
Talking about 2012, Charlie Cannon, chairman and chief executive officer, said: "Activity levels picked up around the world as the year progressed and we closed the year with a record fourth quarter.
"We launched new products, completed a technology acquisition, grew our aftermarket revenue, opened a new plant in China to serve regional markets, and improved segment margins significantly over 2011's results.”
Revenue for the fourth quarter was a record high of $293m, an increase of 8% from the prior-year quarter, driven by record fourth quarter revenue in JBT FoodTech.
Gross profit margin of 26% reflected margin improvement initiatives executed earlier in the year.
The gross profit margin expansion drove record operating income of $28.8m, compared to $12.2m operating income, net of $10.3m in restructuring charges, in the prior-year period.
Fourth quarter inbound orders of $232.2m and backlog of $283.1m increased 12% and 15%, respectively, over the same period last year.
Higher backlog at start of 2013
Cannon said the firm started 2013 with a higher backlog relative to last year and added that current order activity remains strong.
“However, a majority of our current backlog is scheduled for delivery after the first quarter,” he added.
“We anticipate a normal seasonally weak first quarter and earnings pickup in subsequent quarters in line with our historical seasonality trends."
Full year 2012 revenue of $917.3m decreased 4% year-over-year but this was attributed to lower equipment sales, primarily in AeroTech, and unfavorable foreign currency translation.
Consolidated operating income was $60.9m, compared to $53.2m, net of $11.6m in restructuring charges, in the prior-year period.
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