Wisconsin industrial tools and services provider Enerpac Tool Group on Tuesday reported a 10% increase in core sales in the third quarter of its fiscal year.
The company said its net sales of $152 million resulted from strong, broad-based demand across most regions. Enerpac said its GAAP operating margin for the quarter was 4.4%, while its adjusted operating margin was 9%.
"“Throughout the quarter, we continued to navigate a challenging macroeconomic environment, including ongoing supply chain and inflationary pressures as well as managing through the Ukraine conflict and the COVID lockdown in China," Enerpac President and CEO Paul Sternlieb said in a statement. "I am pleased with our team’s ability to remain focused on serving our customers and creating value for all our stakeholders."
Officials said its product sales were up 12% in the latest quarter while its service revenues increased by just 1% year-over-year. The company said it repurchased some 1.8 million shares of stock worth approximately $36 million.
Enerpac also altered its full-year guidance, citing impacts of a stronger U.S. dollar. The company now expects annual sales of $560 to $570 million, down slightly from its earlier forecast range of $560 to $580 million.
“Should we begin to see markets soften, we expect our transformation efforts, which are already underway, will position us well," Sternlieb said.
