Blount (NYSE:BLT) took a few hits in this quarter's earnings report, which was released today. Sales were down 1% compared to Q3 2012, to $230.6 million, and the replacement parts manufacturer also took a $5.1 million restructuring charge for consolidating two facilities in Portland, Ore.
One reason for lower sales was lagging international revenue from Blount's FLAG division (or Forestry, Lawn, and Garden). Those "difficult economic conditions in other regions, particularly Europe and Asia," as explained by Blount CEO Josh Collins, led to a 5% drop in FLAG, while Blount's other segments, FRAG (Farm, Ranch, and Agriculture) and CCF (Concrete Cutting and Finishing) enjoyed a 6.2% and 8% boost in sales, respectively.
Blount's margins dipped this quarter as well, with operating income dropping from $22.5 million in Q3 2012 to $15.6 million, and net income falling from $11.6 million to $7.7 million. Collins said that, despite this quarter's dropping financials, Blount "generated significant cash flow and reduced net debt and working capital in the third quarter," and that "the closure of our Milwaukie, Oregon operation and consolidation of production into our other facilities remains on schedule and is expected to be completed in the fourth quarter."
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