Powell Industries (POWL) Q4 2001 earnings summary

Executive summary

• FY2001 delivered record results and double-digit growth despite recession, September 11 attacks, and reassessment of power plant construction plans.

• Capacity expansion, lean manufacturing, customer-focused selling, and a healthy backlog supported performance and positioned operations for a recovery.

Financial highlights

• FY2001 revenue was $271.243M vs. $223.019M in FY2000; gross profit was $56.797M vs. $40.679M.

• Earnings from operations were $21.790M vs. $10.838M; net earnings were $13.542M vs. $7.061M.

• Diluted EPS was $1.28 vs. $0.67; weighted average diluted shares were 10.600M vs. 10.530M.

Outlook and guidance

• Continued power-generation opportunities expected, though domestic projects planned for 2003 and beyond were delayed or canceled; management expected measured expansion as capacity needs persist.

• Healthy backlog and major-market growth opportunities supported readiness for an economic recovery; domestic and international economic conditions drive capital spending.

• Oil and gas production was entering a growth cycle, with Gulf of Mexico and international projects; several projects and a significant long-term supply agreement with a major oil company were secured.