Actuant Corporation (ATU) has reported a 6.35 percent rise in profit for the quarter ended May 31, 2017. The company has earned $22.51 million, or $0.37 a share in the quarter, compared with $21.17 million, or $0.36 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $19.58 million, or $0.32 a share compared with $23.67 million or $0.40 a share, a year ago.

Revenue during the quarter dropped 3.25 percent to $295.43 million from $305.34 million in the previous year period. Gross margin for the quarter contracted 42 basis points over the previous year period to 34.80 percent. Total expenses were 90.75 percent of quarterly revenues, up from 90.72 percent for the same period last year. That has resulted in a contraction of 3 basis points in operating margin to 9.25 percent.

Operating income for the quarter was $27.33 million, compared with $28.34 million in the previous year period.

However, the adjusted operating income for the quarter stood at $27.72 million compared to $31.84 million in the prior year period. At the same time, adjusted operating margin contracted 105 basis points in the quarter to 9.38 percent from 10.43 percent in the last year period.

Randy Baker, president and chief executive officer of Actuant, commented, "We had many positive market and strategy execution advancements in the third quarter, but they were not able to offset the difficult conditions that persist within the global energy market. Core sales in the Energy segment declined double digits given continued weak offshore upstream spending, and deterioration in maintenance related activity as customers strive to reduce cash outflows. In contrast, both Industrial and Engineered Solutions grew nicely with improvements in end market demand and customer production levels, along with the benefit of strategic efforts to improve sales effectiveness. These higher volumes delivered solid incremental profits within both growth segments. Adjusted EPS of $0.32, excluding restructuring and one-time tax benefits, was below our original guidance as previously communicated, with weak energy maintenance activity and unfavorable segment mix being the primary drivers. In summary, despite the challenges that persist in Energy, I am pleased with the progress we are making on our commercial, operational, and portfolio management strategies."

For fiscal year 2017, Actuant Corporation forecasts revenue to be in the range of $1,080 million to $1,090 million. The company expects diluted earnings per share to be in the range of $0.82 to $0.87 on adjusted basis.

The company has spent $22.68 million cash to meet investing activities during the nine month period as against cash outgo of $87.66 million in the last year period. It has incurred net capital expenditure of $22.68 million on net basis during the nine month period, up 224.48 percent or $15.69 million from year ago period.

The company has spent $7.89 million cash to carry out financing activities during the nine month period as against cash outgo of $12.33 million in the last year period.

Cash and cash equivalents stood at $198.95 million as on May 31, 2017, up 45.13 percent or $61.87 million from $137.09 million on May 31, 2016.