AZZ Q2 2017 net income decreased 41.9% to $10 millionStaff Writer | October 6, 2016
AZZ announced financial results for the three month period ended August 31, 2016. Revenues for Q2 2017 were $195 million compared to $214.2 million for the same quarter last year, a decrease of 9%.
AZZ Revenues were down to $195 million
Earnings for the second quarter of fiscal 2017 included a pretax charge of $8.0 million relating to realignment charges taken to cover the costs in the Galvanizing segment of shutting two plants, repurposing a third, and other charges related to the recognition of the write off of certain fixed assets, as well as charges taken in the Energy segment related to management headcount reductions.
Earnings for the quarter were negatively impacted by approximately $0.17 per share, net of related tax benefits driven by the realignment charges.
Including the negative effects of the realignment charges, gross margins for the quarter were 21.5% compared to 25.0% in the second quarter of fiscal 2016. SG&A costs were down 0.3% versus the second quarter of fiscal 2016 despite the inclusion of $0.4 million in realignment charges in the second quarter of fiscal 2017.
Additionally, the effective tax rate fell to 10.4% in the current quarter compared to 21.2% in the second quarter of the prior year, driven primarily by certain state tax benefits from realignment costs incurred.
Incoming orders for the quarter were $193.7 million while shipments for the quarter totaled $195.0 million, resulting in a book to ship ratio of 0.99. In the second quarter a year earlier, incoming orders were $233.5 million, resulting in a book to ship ratio of 1.09.
Our backlog at the end of the second quarter of fiscal 2017 was $352.8 million compared to backlog at the end of the prior year second quarter of $338.1 million. Approximately 27% of the backlog is expected to be delivered outside the U.S. ■