Big One-time Charge Pushes Blount Into Red

April 23 -- Blount International Inc. on Wednesday reported 2013 sales in-line with Wall Street estimates, but a nearly $25 million one-time non-cash charge pushed the company deep into the red for quarter and nearly wiped out its annual profit.

The Portland-based maker of saw chains and other agricultural equipment reported $900.6 million in 2013 sales, a nearly 3 percent drop from 2012, but in-line with the forecasts of Wall Street analysts polled by Thomson Financial.

The company reported a $4.8 million profit for the year, a roughly 88 percent drop from 2012. Its $0.10 in earnings per share was well below the forecasts of Wall Street analysts who expected $0.68 in earnings per share.

The biggest factor in the slim bottom line was a nearly a $25 million one-time non-cash charge related to how the company valued acquisitions made in 2010 and 2011.

The company recorded the charge in the fourth quarter resulting in a $21 million loss for the quarter.

Charge aside, the company had $123.5 million in earnings before taxes and other charges in 2013, down from roughly $135 million a year ago. It also had $37.5 million in 2013 operating income.

Looking ahead, the company expects an improved 2014. It predicts sales between $925 million and $950 million and earnings before taxes and other charges of $130 million to $135 million, up from $123 million in 2013. The big charge that slashes 2013 earnings is non-recurring.

Wednesday's earnings release also brought the company's filings with the Securities and Exchange Commission up to date. It  previously disclosed a "material weakness" in its accounting.

The company released earnings before the market opened. Shares closed down 2 percent at $11.45. They had a 52-week range between $10.52 and $14.74.

Matthew Kish      www.bizjournals.com/Portland