EnPro Industries Inc., the parent company of Palmyra’s Garlock Family of Companies, on Tuesday reported a strong second quarter, while also announcing a change in leadership.
For the second quarter ended June 30, the Charlotte, N.C., manufacturer posted a 20 percent increase in sales to $298.6 million. Net income for the quarter was $29.3 million, compared with a net loss of $3.3 million in the year-ago quarter. Diluted earnings per share were $1.41, compared with a 16-cent loss in the second quarter last year.
Analysts had expected earnings of $1.02 on sales of roughly $273 million.
Separately on Tuesday, EnPro said company President and CEO Marvin Riley would step down from his role effective immediately. Company officials said Riley’s departure was not related to any disagreement with the board or members of management concerning corporate strategy or financials.
The board has engaged a search firm for a permanent replacement and named Eric Vaillancourt as interim president and CEO. Vaillancourt previously served as president of the company’s Sealing Technologies and has been with the firm 12 years. Sealing Technologies includes Garlock, STEMCO and Technetics Group.
“Our portfolio reshaping strategy, focus on organic growth drivers and cost discipline drove significantly improved operating leverage in the second quarter. We reported a strong adjusted EBITDA margin of 19.2 percent, a 400-basis point improvement compared to a year ago and 60 basis points sequentially,” Vaillancourt said of the firm’s second-quarter achievements. “We saw momentum across all businesses in the second quarter as the global economic recovery continued.”
Within the Sealing Technologies division, sales increased 7.9 percent compared with the prior-year period despite the impact of divestitures in 2020. The company saw strong demand in heavy-duty truck, general industrial, food & pharma and petrochemical markets.
“Given our strong first half 2021 results and current order patterns, we now expect 2021 sales to be in the range of $1.075 billion to $1.125 billion, adjusted EBITDA to be in the range of $200 million to $210 million and adjusted diluted earnings per share from continuing operations to be in the range of $5.16 to $5.50,” Vaillancourt said.
Shares of company stock (NYSE: NPO) were down slightly at $90.69 Tuesday morning.
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