EnPro Industries Inc., the Charlotte-based diesel engine maker and industrial manufacturer, reported a 65.6 percent drop in its fourth-quarter profit following weakened demand across its market segments, according to a Securities and Exchange Commission filing.
The industrial conglomerate announced fourth-quarter net income of $3.3 million, adjusted for asbestos claims-related costs and other restructuring expenses. The figure translated to a loss of 14 cents per share for the company, well below analyst expectations of 46 cents per share.
A year ago, the company reported adjusted net income of $9.6 million, or 30 cents per share.
“Despite the market headwinds that continue to be quite challenging, I am very much energized about EnPro’s future,” said Chief Executive Officer Steve Macadam. “Over the past year, we have taken a variety of actions to resolve our asbestos burden, strengthen our core business and create new growth opportunities.”
Garlock Sealing Technologies, an EnPro subsidiary, filed for Chapter 11 bankruptcy protection in 2010 following consumer lawsuits claiming the company’s seal and gasket products led to asbestos-related poisoning. EnPro announced in November that it had entered into a definitive settlement agreement with workers’ compensation boards to resolve current and future asbestos claims.
EnPro’s overall revenue fell 10.9 percent to $286.9 million from $321.9 million in the same period a year ago.
Shares of EnPro stock have fallen more than 8 percent since the Thursday filing, closing at $63.50 on Friday.
“Demand in nearly all of our markets continued to be soft in the fourth quarter, with semiconductor and food and pharma once again being notable exceptions.” Macadam added. “Aside from those markets, the macroeconomic drivers that affect our businesses continue to suggest sluggish demand or a weak recovery over the next year.”
Founded in 2001, EnPro, which reported sales of $705.6 million for the year, employs nearly 4,500 people worldwide and manufactures products through its three operating segments: sealing products, engineered products and power systems.
The filing can be found here.
