Actuant Announces Decision to Divest Electrical Segment

  Actuant Announces Decision to Divest Electrical Segment

Business Wire

MILWAUKEE -- June 3, 2013

Actuant Corporation (NYSE:ATU) announced today that its Board of Directors has
authorized a plan to commence a divestiture process for its Electrical
segment. Actuant has retained Robert W. Baird & Company to advise on the
process and plans to reclassify the segment to discontinued operations in the
third quarter of fiscal 2013.

"The sale of Electrical allows Actuant to streamline our strategy and refocus
on the remaining businesses in a way that better positions the Company to take
advantage of our core competencies, current business model and global growth
trends,” said Robert C. Arzbaecher, Chairman and Chief Executive Officer.
“We’ve outlined four areas of emphasis for growth, through both organic and
acquisition strategies, which include energy, infrastructure, farm
productivity and natural resources & sustainability. Actuant’s three remaining
segments are well positioned to build on these secular growth trends, further
expand into emerging markets, and deliver superior long-term returns.”

"The Electrical segment has a variety of premium brands and is a valuable
asset." Arzbaecher continued. "We believe the sale of the segment would
provide a buyer the opportunity to fully leverage the market leading positions
and depth and breadth of the segment’s diverse electrical products and
technologies. We will continue to operate the business, including executing
its existing plans to grow revenues and profitability, during the divestiture
process.”

Actuant intends to redeploy the proceeds from the sale to fund acquisitions
and to return capital to shareholders in the form of common stock share
repurchases. The Company expects to complete the sale during fiscal 2014.

In conjunction with the reclassification of the Electrical segment to
discontinued operations; Actuant announced it expects to record a non-cash,
after-tax charge of approximately $150 million from the write-down of the net
assets held for sale to their net realizable value in the third quarter. As a
result of this charge and the reclassification of Electrical segment results
out of continuing operations, actual reported results for the third quarter
will not be comparable to the sales and diluted earnings per share (EPS)
guidance provided in Actuant’s March 20, 2013 second quarter earnings release.
On a comparable basis, the company affirmed its prior third quarter guidance,
which included sales of $410-420 million and EPS of $0.63-0.68.

Historical operating results, adjusted to reclassify the Electrical segment
from continuing operations, are included in the attachment to this press
release. A more comprehensive review of third quarter fiscal 2013 results will
be discussed in the Company's third quarter earnings release and conference
call scheduled for June 19, 2013.

The Electrical segment primarily serves the retail do-it-yourself, marine,
industrial OEM and wholesale electrical markets with a variety of products
under the Gardner Bender, Marinco, Mastervolt, Acme and Turner Electric brand
names. In 2012, it had sales of approximately $325 million. The segment
employs approximately 1,000 and operates from six locations across the globe
with its headquarters in Menomonee Falls, Wisconsin.

Conference Call and Webcast

Actuant management will host a conference call today, June 3, 2013, at 11:00
A.M. Eastern Time (10:00 A.M. Central Time) to discuss the proposed
divestiture. Slides accompanying the call will be available on the Company's
website at: http://www.actuant.com approximately one half hour before the
call.

To participate on the conference call, please dial 1-212-271-4657. A live
audio webcast will also be available on the Company's website at
www.actuant.com.

About Actuant

Actuant Corporation is a diversified industrial company serving customers from
operations in more than 30 countries. The Actuant businesses are leaders in a
broad array of niche markets including branded hydraulic tools and solutions;
specialized products and services for energy markets and highly engineered
position and motion control systems. The Company was founded in 1910 and is
headquartered in Menomonee Falls, Wisconsin. Actuant trades on the NYSE under
the symbol ATU. For further information on Actuant and its businesses, visit
the Company's website at www.actuant.com.

Safe Harbor

Certain of the above comments represent forward-looking statements made
pursuant to the provisions of the Private Securities Litigation Reform Act of
1995. Management cautions that these statements are based on current estimates
of future performance and are highly dependent upon a variety of factors,
which could cause actual results to differ from these estimates. Actuant’s
results are also subject to general economic conditions, variation in demand
from customers, the impact of geopolitical activity on the economy, continued
market acceptance of the Company’s new product introductions, the successful
integration of acquisitions, the completion of the Electrical segment sale,
restructuring, operating margin risk due to competitive pricing and operating
efficiencies, supply chain risk, material and labor cost increases, foreign
currency fluctuations and interest rate risk. See the Company’s Form 10-K
filed with the Securities and Exchange Commission for further information
regarding risk factors. Actuant disclaims any obligation to publicly update or
revise any forward-looking statements as a result of new information, future
events or any other reason.

Actuant Corporation
Condensed Consolidated Statements of Operations
(Dollars in thousands except per share amounts)
(unaudited)
                                                                                                    
                 Three Months Ended                                               Three Months Ended        
                                                                   Twelve                                    Six
                                                                   Months Ended                              Months
                                                                                                             Ended
                 November    February    May 31,     August 31,    August 31,      November    February      February
                 30,         29,                                                   30,         28,           28,
                 2011       2012       2012       2012          2012            2012       2013          2013
                                                                                                             
Net sales        $ 309,966   $ 300,919   $ 343,268   $ 322,368     $ 1,276,521     $ 307,809   $ 300,468     $ 608,277
Cost of           182,951   184,836   204,514   192,760     765,061       183,441   184,290     367,731
products sold
Gross profit       127,015     116,083     138,754     129,608       511,460         124,368     116,178       240,546
                                                                                                             
Selling,
administrative
and                69,306      67,160      74,341      74,114        284,921         74,860      73,339        148,199
engineering
expenses
Amortization
of intangible     5,405     5,268     5,563     5,789       22,025        6,034     5,968       12,002
assets
Operating          52,304      43,655      58,850      49,705        204,514         43,474      36,871        80,345
profit
                                                                                                             
Financing          8,222       7,821       7,236       6,281         29,560          6,322       6,260         12,582
costs, net
Debt
refinancing        -           -           16,830      -             16,830          -           -             -
costs
Other (income)    665       42        2,591     196         3,494         644       (36     )    608
expense, net
Earnings from
operations
before income
tax expense        43,417      35,792      32,193      43,228        154,630         36,508      30,647        67,155
                                                                                                             
Income tax        9,447     8,139     4,456     7,312       29,354        5,957     4,813       10,770
expense
                                                                                                             
Earnings from
continuing         33,970      27,653      27,737      35,916        125,276         30,551      25,834        56,385
operations
                                                                                                             
Income (loss)
from
Discontinued      3,204     4,522     6,664     (52,376 )    (37,986   )    5,792     2,601       8,393
Operations,
net of tax
                                                                                                             
Net earnings     $ 37,174   $ 32,175   $ 34,401   $ (16,460 )   $ 87,290       $ 36,343   $ 28,435     $ 64,778
(loss)
                                                                                                             
                                                                                                             
Earnings from
continuing
operations per
share
Basic            $ 0.50      $ 0.41      $ 0.39      $ 0.49        $ 1.79          $ 0.42      $ 0.35        $ 0.77
Diluted            0.46        0.37        0.36        0.48          1.68            0.41        0.35          0.76
                                                                                                             
Earnings
(loss) per
share
Basic            $ 0.54      $ 0.47      $ 0.48      $ (0.23   )   $ 1.25          $ 0.50      $ 0.39        $ 0.89
Diluted            0.50        0.43        0.45        (0.22   )     1.17            0.49        0.38          0.87
                                                                                                             
Weighted
average common
shares
outstanding
Basic              68,421      68,064      71,083      72,846        70,099          72,791      72,946        72,869
Diluted            75,142      75,105      75,371      74,158        74,940          74,271      74,416        74,343

                                                                                        
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA
(Dollars in thousands)
 
                 FISCAL 2012                                         FISCAL 2013
                 Q1       Q2       Q3       Q4       TOTAL       Q1       Q2       Q3  Q4  TOTAL
SALES
  INDUSTRIAL     $         $         $         $         $ 419,295   $         $                   $
  SEGMENT        100,253   98,342    110,102   110,598               101,122   98,999              200,121
  ENERGY         80,421    78,937    96,399    93,406    349,163     90,769    80,794              171,563
  SEGMENT
  ENGINEERED
  SOLUTIONS      129,292  123,640  136,767  118,364  508,063     115,918  120,675        236,593
  SEGMENT
    TOTAL        $        $        $        $        $           $        $              $
                 309,966   300,919   343,268   322,368   1,276,521   307,809   300,468             608,277
                                                                                                   
% SALES GROWTH
  INDUSTRIAL     15%       11%       2%        2%        7%          1%        1%                  1%
  SEGMENT
  ENERGY         14%       28%       24%       13%       19%         13%       2%                  8%
  SEGMENT
  ENGINEERED
  SOLUTIONS      23%       12%       8%        -10%      7%          -10%      -2%                 -6%
  SEGMENT
    TOTAL        18%       16%       10%       0%        10%         -1%       0%                  0%
                                                                                                   
OPERATING
PROFIT (LOSS)
  INDUSTRIAL     $         $         $         $         $ 114,777   $         $                   $ 53,356
  SEGMENT        27,933    26,690    30,681    29,473                27,006    26,350
  ENERGY         13,217    11,632    18,515    18,841    62,205      15,387    9,677               25,064
  SEGMENT
  ENGINEERED
  SOLUTIONS      18,999    13,281    18,467    10,104    60,851      7,625     8,275               15,900
  SEGMENT
  CORPORATE /    (7,845)  (7,948)  (8,813)  (8,713)  (33,319)    (6,544)  (7,431)        (13,975)
  GENERAL
    TOTAL        $        $        $        $        $ 204,514   $        $              $ 80,345
                 52,304    43,655    58,850    49,705                43,474    36,871
                                                                                                   
OPERATING
PROFIT %
  INDUSTRIAL     27.9%     27.1%     27.9%     26.6%     27.4%       26.7%     26.6%               26.7%
  SEGMENT
  ENERGY         16.4%     14.7%     19.2%     20.2%     17.8%       17.0%     12.0%               14.6%
  SEGMENT
  ENGINEERED
  SOLUTIONS      14.7%     10.7%     13.5%     8.5%      12.0%       6.6%      6.9%                6.7%
  SEGMENT
                                                                                                   
    TOTAL
    (INCLUDING   16.9%     14.5%     17.1%     15.4%     16.0%       14.1%     12.3%               13.2%
    CORPORATE)
                                                                                                   
EBITDA
  INDUSTRIAL     $         $         $         $         $ 122,180   $         $                   $ 57,504
  SEGMENT        29,220    29,116    32,070    31,774                29,033    28,471
  ENERGY         18,243    15,601    22,216    23,166    79,226      19,694    14,278              33,972
  SEGMENT
  ENGINEERED
  SOLUTIONS      22,213    16,762    21,418    13,991    74,384      12,047    12,611              24,658
  SEGMENT
  CORPORATE /    (7,217)  (7,479)  (8,506)  (7,972)  (31,174)    (6,195)  (6,582)        (12,777)
  GENERAL
    TOTAL        $        $        $        $        $ 244,616   $        $              $
                 62,459    54,000    67,198    60,959                54,579    48,778              103,357
                                                                                                   
EBITDA %
  INDUSTRIAL     29.1%     29.6%     29.1%     28.7%     29.1%       28.7%     28.8%               28.7%
  SEGMENT
  ENERGY         22.7%     19.8%     23.0%     24.8%     22.7%       21.7%     17.7%               19.8%
  SEGMENT
  ENGINEERED
  SOLUTIONS      17.2%     13.6%     15.7%     11.8%     14.6%       10.4%     10.5%               10.4%
  SEGMENT
                                                                                                   
    TOTAL
    (INCLUDING   20.2%     17.9%     19.6%     18.9%     19.2%       17.7%     16.2%               17.0%
    CORPORATE)

      
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA
RECONCILIATION OF GAAP MEASURE TO NON-GAAP MEASURES
      (Dollars in thousands, except for per share amounts)
                                                                                                               
                                                                                                                         
                    FISCAL 2012                                                      FISCAL 2013
                    Q1          Q2          Q3          Q4           TOTAL       Q1          Q2          Q3  Q4  TOTAL
EARNINGS (LOSS)
BEFORE SPECIAL
ITEMS (1)
      NET EARNINGS  $ 37,174     $ 32,175     $ 34,401     $ (16,460 )   $ 87,290    $ 36,343     $ 28,435               $ 64,778
      (LOSS)
      DISCONTINUED
      OPERATIONS,    (3,204 )   (4,522 )   (6,664 )   52,376     37,986     (5,792 )   (2,601 )         (8,393  )
      NET OF
      INCOME TAX
      EARNINGS
      FROM            33,970       27,653       27,737       35,916        125,276     30,551       25,834                 56,385
      CONTINUING
      OPERATIONS
      DEBT
      REFINANCING
      CHARGES, NET   -         -         10,482    -          10,482     -         -               -       
      OF INCOME
      TAX
      TOTAL         $ 33,970   $ 27,653   $ 38,219   $ 35,916    $ 135,758   $ 30,551   $ 25,834         $ 56,385  
                                                                                                                         
DILUTED EARNINGS
(LOSS) PER SHARE,
BEFORE
SPECIAL ITEMS (1)
      NET EARNINGS  $ 0.50       $ 0.43       $ 0.45       $ (0.22   )   $ 1.17      $ 0.49       $ 0.38                 $ 0.87
      (LOSS)
      DISCONTINUED
      OPERATIONS,    (0.04  )   (0.06  )   (0.09  )   0.70       0.51       (0.08  )   (0.03  )         (0.11   )
      NET OF
      INCOME TAX
      EARNINGS
      FROM            0.46         0.37         0.36         0.48          1.68        0.41         0.35                   0.76
      CONTINUING
      OPERATIONS
      DEBT
      REFINANCING
      CHARGES, NET   -         -         0.15      -          0.15       -         -               -       
      OF INCOME
      TAX
      TOTAL         $ 0.46     $ 0.37     $ 0.51     $ 0.48      $ 1.83      $ 0.41     $ 0.35           $ 0.76    
                                                                                                                         
                                                                                                                         
EBITDA (2)
      NET EARNINGS
      (LOSS) (GAAP  $ 37,174     $ 32,175     $ 34,401     $ (16,460 )   $ 87,290    $ 36,343     $ 28,435               $ 64,778
      MEASURE)
      DISCONTINUED
      OPERATIONS,    (3,204 )   (4,522 )   (6,664 )   52,376     37,986     (5,792 )   (2,601 )         (8,393  )
      NET OF
      INCOME TAX
      EARNINGS
      FROM            33,970       27,653       27,737       35,916        125,276     30,551       25,834                 56,385
      CONTINUING
      OPERATIONS
      FINANCING       8,222        7,821        24,066       6,281         46,390      6,322        6,260                  12,582
      COSTS, NET
      INCOME TAX      9,447        8,139        4,456        7,312         29,354      5,957        4,813                  10,770
      EXPENSE
      DEPRECIATION
      &              10,820    10,387    10,939    11,450     43,596     11,749    11,871          23,620  
      AMORTIZATION
      EBITDA -
      EXCLUDING
      DISCONTINUED  $ 62,459   $ 54,000   $ 67,198   $ 60,959    $ 244,616   $ 54,579   $ 48,778         $ 103,357 
      OPERATIONS
      (NON-GAAP
      MEASURE)
                                                                                                                         
FOOTNOTES
                                                                                                                         
NOTE: The total of the individual quarters may not equal the annual total due to rounding.
                                                                                                                         
      Earnings (loss) and diluted earnings (loss) per share, excluding special items (debt refinancing charges and discontinued
      operations), represent net earnings (loss) and diluted earnings (loss) per share per the Condensed Consolidated Statements of
(1)   Operations net of charges or credits for items to be highlighted for comparability purposes. These measures should not be
      considered as an alternative to net earnings (loss) or diluted earnings (loss) per share as an indicator of the Company's
      operating performance. However, this presentation is important to investors for understanding the operating results of the
      current portfolio of Actuant companies. The total of the individual components may not equal due to rounding.
                                                                                                                         
      EBITDA represents net earnings (loss) before financing costs, net, income tax expense, discontinued operations and
      depreciation & amortization. EBITDA is not a calculation based upon generally accepted accounting principles (GAAP). The
      amounts included in the EBITDA calculation, however, are derived from amounts included in the Condensed Consolidated
      Statements of Operations data. EBITDA should not be considered as an alternative to net earnings or operating profit as an
(2)   indicator of the Company's operating performance, or as an alternative to operating cash flows as a measure of liquidity.
      Actuant has presented EBITDA because it regularly reviews this as a measure of the Company's ability to incur and service
      debt. In addition, EBITDA is used by many of our investors and lenders, and is presented as a convenience to them. However,
      the EBITDA measure presented may not always be comparable to similarly titled measures reported by other companies due to
      differences in the components of the calculation.

Contact:

Actuant Corporation
Karen Bauer
Communications & Investor Relations Leader
262-293-1562
 
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