L.B. Foster Company reported its third quarter 2018 financial results, with sales of $167.1 million, up by 27.1 percent compared to the third quarter of 2017. Net income for the 2018 third quarter was $5 million, or $0.47 per diluted share, compared to the 2017 third quarter, which had a net income of $3.2 million, or $0.31 per diluted share.
“The Company's third quarter results reflect continued momentum in new orders, which drove a 32.7 percent increase in backlog over the prior year period,” remarked Bob Bauer, L.B. Foster president and CEO. “Spending directed toward transit rail infrastructure and civil construction projects drove a significant portion of the increase. The Company's backlog going into the fourth quarter stands at $251.6 million.”
“Operating performance continued to improve as net income for the quarter and nine-month period were well above prior year,” continued Bauer. “Operating cash flow in the third quarter was strong, helping us reach $22.4 million year-to-date. Working capital performance stands out as trade working capital balances are below prior year level on 17.1 percent sales growth. Couple this with capital spending at $3.2 million year-to-date, and it allowed further reduction of debt, bringing our total debt to $76.5 million.”
"We expect to increase the pace of capital spending over the next year as attractive growth opportunities are emerging,” added Bauer.