In a statement, CEO Ron Keating said Evoqua’s results were dragged down by “isolated items” related in part to supply chain disruptions influenced by tariffs and a delay on a large aquatics project as well as the integration of an acquisition.
“The overall results, while clearly disappointing, were primarily impacted by isolated items related to an acquisition ERP system integration, supply chain disruptions influenced by tariffs, and an extended delay on a large aquatics project,” Keating said. “We are taking the appropriate actions to improve our performance and we are pleased that Neptune Benson was migrated onto our ERP system in November."
According to Keating, the company will focus its efforts on profitable growth, cost management and free cash flow generation in fiscal 2019. It will also embrace a restructuring that will cost $17 million to $22 million over the next two fiscal years, but bring savings of $15 million to $20 million on an annualized basis.
In its latest quarter, the water treatment company swung to a net loss of $3.45 million, or $0.03 per share, from a profit of $11.06 million, or $0.10 per share in the corresponding period last year. Its revenue, meanwhile, jumped to $366.3 million, up from $356.5 million in the year-ago quarter.
Optimistic about the company's restructuring efforts, investors sent shares in Evoqua up 4.5% to $8.90 in Tuesday’s morning trading session.
Contact Ellen Kelleher at [email protected]