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EnPro Industries Inc. on Thursday reported a drop in fourth-quarter sales and operating profit for Garlock Sealing Technologies LLC.
Garlock, based in Palmyra, Wayne County, is a deconsolidated subsidiary of North Carolina-based EnPro with nearly 600 local employees. In 2010, Garlock filed a voluntary petition to establish a trust to resolve all current and future asbestos claims under the U.S. Bankruptcy Code.
Garlock and its subsidiaries reported adjusted net income of $6.6 million, down 11 percent from $7.4 million. Earnings before interest, income taxes, depreciation, amortization and asbestos-related expense were $11.8 million. Operating income was $10.3 million, down 9 percent from $11.3 million a year ago, due in part to weakened demand and volume decreases.
Third-party sales were down 2 percent to $52.9 million, from $54.1 million. The company said a slowdown of activity in the subsidiary’s North American markets affected sales during the quarter.
Third-party sales eliminate intercompany sales between Garlock Sealing Technologies and other parts of EnPro, officials said. Total sales, including intercompany sales, were roughly $57 million.
For the full year, Garlock and its subsidiaries reported earnings of $31.8 million, up 10 percent from earnings of $28.8 million last year. Earnings before interest, income taxes, depreciation, amortization and asbestos-related expense were $53.1 million. Operating income was $47.2 million, up 5 percent from an operating profit of $44.8 million the prior year. The increase was due to higher volumes, as well as cost reductions and price improvements.
Third-party sales rose 3 percent to $220 million. The company said the increase was driven primarily by increased activity in its markets over the first three quarters of the year and better product pricing. Garlock’s full year sales, including intercompany sales, were $240 million.
Garlock and its subsidiaries completed the year with cash and long-term investments totaling $153.6 million, EnPro said.
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