EnPro: Garlock EBITDA decreases to $15.2 million in second quarter

By Caroline Salls

Pittsburgh, July 31 – Garlock Sealing Technologies, LLC reported $15.2 million of EBITDA for the quarter ended June 30 on $63 million of sales, according to a release from parent EnPro Industries, Inc.

Those figures showed a decline from the $18.3 million of EBITDA posted for the quarter ended June 30, 2013 on $64.8 million of sales.

The company’s adjusted net income for the second quarter of 2014 was $9.3 million, down from $11.3 million of adjusted net income for the same period of 2013.

EnPro said the second-quarter decline in sales for Garlock and its subsidiaries reflected lower demand in North American petrochemical, refinery and metals processing markets as well as lower intercompany shipments to European affiliates.

The company said Garlock’s adjusted net income excludes intercompany interest income and income or expense associated with the asbestos claims resolution process. Asbestos-related income was $181.3 million in the second quarter, compared to asbestos-related expense of $13.1 million in the second quarter of 2013.

According to the release, the year-over-year change reflects a reduction of $186.3 million in Garlock’s accrued estimate of asbestos-related claims liabilities under its amended plan of reorganization and lower litigation expenses compared to the second quarter of 2013 when preparations for the liability estimation trial were underway.

Garlock reported $28.7 million of EBITDA for the six months ended June 30 on $122 million in sales, compared with $32.5 million of EBITDA for the six months ended June 30, 2013 on $128.6 million in sales.

Adjusted net income for the first half of this year was $17.5 million, down from $19.9 million for the same period of last year.

Garlock is a subsidiary of Charlotte, N.C.-based EnPro Industries Inc., which makes sealing products, bearings, compressors and engines. Garlock filed for bankruptcy on June 5, 2010 in the U.S. Bankruptcy Court for the Western District of North Carolina, and its Chapter 11 case number is 10-31607.

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