Business
L.B. Foster Company Announces Precision Measurement Products and Systems Divestiture and Updated 2023 Financial Guidance
PITTSBURGH, April 03, 2023 (GLOBE NEWSWIRE) -- L.B. Foster Company (NASDAQ: FSTR), a global technology solutions provider of products and services for the
About this update from L.b. Foster Company
[{"type":"text","content":"PITTSBURGH, April 03, 2023 (GLOBE NEWSWIRE) -- L.B. Foster Company (NASDAQ: FSTR), a global technology solutions provider of products and services for the rail and infrastructure markets (the \"Company\"), today announced the sale of substantially all the operating assets of its Chemtec Energy Services, L.L.C. precision measurement products and systems business located in Willis, Texas to a private buyer. Cash proceeds from the transaction are expected to total approximately $6.6 million, subject to customary working capital adjustments. Revenues from the divested business totaled approximately $25 million for the trailing-twelve-months ended March 31, 2023. John Kasel, the Company’s President and Chief Executive Officer, commented, “As highlighted during our yearend earnings call, we remain focused on executing our strategic playbook by deemphasizing our exposure to the energy market while also taking steps to further reduce leverage following last year’s acquisition activity. We had a solid quarter of operating cash generation in the first quarter and this divestiture further reduces net debt and improves our leverage. We’re pleased with the outcome of the transaction process and wish our Chemtec colleagues all the best.” Update to 2023 Financial GuidanceAs a result of the divestiture, the Company is updating financial guidance for its fiscal year ending December 31, 2023 with net sales now expected to range between $520 million to $550 million (down from $540 million to $570 million previously), with expected adjusted EBITDA remaining unchanged between $27 million and $31 million. About L.B. Foster CompanyFounded in 1902, L.B. Foster Company is a global solutions provider of engineered, manufactured products and services that builds and supports infrastructure. The Company’s innovative engineering and product development solutions address the safety, reliability, and performance needs of its customer's most challenging requirements. The Company maintains locations in North America, South America, Europe, and Asia. For more information, please visit www.lbfoster.com. Forward-Looking StatementsThis release may contain forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Forward-looking statements include an...