CHARLOTTE, N.C.—EnPro Industries Inc. showed increased sales in its first quarter, according to its financial statement.
Pro forma net sales for the first quarter went up to $338 million, from $335 million in 2016, with Garlock Sealing Technologies responsible for about $42.1 million of that total.
The pro forma segment profit increased to $44.2 million from $24 million, an increase of about 84 percent. Pro forma segment margin increased to 13.1 percent from 7.2 percent.
The pro forma totals include financial information from GST and OldCo, L.L.C., which have been deconsolidated with the rest of the company following filing under Chapter 11 in a process to resolve asbestos claims. That process is proceeding toward plan confirmation along the expected timeline, according to the statement, with the confirmation hearing with the bankruptcy court scheduled for the week of May 15.
With timely receipt of court approvals and the absence of appeals or delays, consummation of the joint plan of reorganization and reconsolidation of GST and OldCo into EnPro will happen in the third quarter of 2017, Steve Macadam, EnPro Industries president and CEO, said in the statement.
"I am pleased that we are seeing positive results from our efforts over the past several years to strengthen our core business and create new growth opportunities, while entering the final stages of resolving the asbestos burden," Macadam said.
In totals excluding GST and OldCo, net sales improved to $296 million from $295 million in 2016. Segment profit doubled, reaching $36 million in 2017 versus $18 million last year, and segment margin increased to 12.2 percent from 6.1 percent.
Consolidated adjusted net income increased $9.7 million and pro forma adjusted net income increased $11.5 million in the first quarter, compared to 2016.
The company purchased 60,800 shares for $4 million in the first quarter as part of its share repurchase program, authorized in October 2015. The company paid a $0.22 per share dividend with a total value of $4.7 million.
"The first quarter of this year was a breath of fresh air after nearly two years of persistent market headswinds," Macadam said. "We experienced modestly strengthening conditions in many of the markets we serve."
Semiconductor, food and pharma and aerospace continued to be strong. Oil, gas and automotive improved, while industrial gas turbines, general industrial and nuclear demand remained flat. That positive momentum was partially offset by modest weakness in heavy-duty trucking.
GST benefited from small improvements in demand across the refining, steel and mining markets.
Demand in sealing products and engineered products was positive compared to the same period a year ago.