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John Bean Applied sciences (NYSE:JBT)
This autumn 2019 Earnings Name
Feb 20, 2020, 10:00 a.m. ET

Contents:

  • Ready Remarks
  • Questions and Solutions
  • Name Members

Ready Remarks:

Operator

Good morning, and welcome to JBT Company’s fourth-quarter 2019 earnings convention name. My identify is Lindsay, and I might be your convention operator at present. [Operator instructions] I’ll now flip the decision over to JBT’s VP of investor relations, Megan Rattigan to start at present’s convention.

Megan RattiganVice President of Investor Relations

Thanks, Lindsay. Good morning, everybody, and welcome to our fourth-quarter and year-end 2019 convention name. With me on the decision are Chairman, President, and CEO Tom Giacomini; and our govt vp and CFO, Brian Deck. In at present’s name, we are going to use forward-looking statements which are topic to the protected harbor language in yesterday’s press launch and 8-Ok submitting.

JBT’s periodic SEC filings additionally include data concerning danger elements which will have an effect on our outcomes. These paperwork can be found within the investor relations part of our web site. Additionally, our dialogue at present consists of references to sure non-GAAP measures. A reconciliation of those measures to probably the most comparable GAAP measure will be present in yesterday’s press launch.

Now I want to flip the decision over to Tom.

Tom GiacominiChairman, President, and Chief Government Officer

Thanks, Megan, and good morning. JBT posted stable progress and earnings features in 2019. Reported earnings per share had been forward 24% in contrast with 2018, whereas adjusted EPS expanded 13%. Web earnings elevated 24%, whereas adjusted EBITDA, which is a crucial gauge of our efficiency, grew 15% to $292 million in 2019.

We proceed to take pleasure in sturdy progress at AeroTech. FoodTech delivered stable progress. FoodTech’s fourth-quarter order enchancment was encouraging nevertheless it’s too quickly to say a turnaround from the situations we skilled by means of most of 2019 with order commitments damage by commerce points and enterprise uncertainty. That stated, as we mentioned all year long, our restructuring actions, together with the implementation of JBT working system have enhanced effectivity and profitability.

The three acquisitions we made in 2019 are performing effectively. Furthermore, the continued progress of our aftermarket enterprise has benefited margins and proceed to create a extra secure and resilient JBT. Waiting for 2020, we anticipate to develop, seize additional margin enlargement and submit a 10% improve in adjusted EBITDA. I will flip the decision over to Brian to supply extra element on JBT’s efficiency in 2019 and steerage for 2020.

Afterwards, I will discuss extra in regards to the poultry present, geographic traits, current acquisitions and the energy of our recurring income stream.

Brian DeckGovernment Vice President and Chief Monetary Officer

Thanks, Tom, and good morning, everybody. As our launch supplied an in depth breakdown of income progress, let me bounce into an evaluation of efficiency and traits for the yr. Even in an setting damage by commerce and enterprise uncertainty, FoodTech’s 2019 natural progress was 1%. On the similar time, we delivered an 8% progress contribution from acquisitions, and we expanded FoodTech profitability with phase working revenue margins of 140 foundation factors and adjusted EBITDA margins up 270 foundation factors to 19.3%.

FoodTech’s fourth-quarter margins had been down barely yr over yr attributable to larger incentive compensation expense and product combine. AeroTech’s full-year efficiency exceeded expectations, bolstered by a robust 7% progress in natural income, which was on prime of the 2018’s natural progress of 16%. We had been additionally in a position to develop profitability at AeroTech with a 130-basis-point improve in phase working revenue margins. AeroTech’s adjusted EBITDA margins expanded 160 foundation factors to 13.7% for the yr, together with a document excessive of 15.9% within the fourth quarter.

For full-year 2019, FoodTech orders declined 2%. As Tom talked about, we loved a pickup within the fourth quarter with an 8% year-over-year achieve to the very best ranges of the yr. At AeroTech, orders gained 1% for the total yr and declined 14% within the fourth quarter, coming off an distinctive yr in 2018. Moreover, there have been a couple of important orders that slipped from year-end into 2020.

General situations for AeroTech stays stable with explicit energy within the fastened product strains. JBT’s adjusted EBITDA of $87 million for the fourth quarter and $292 million for the yr had been consistent with our most up-to-date steerage. On the EPS line, the reported $4.03 per share got here in underneath our steerage of $4.10 to $4.20. This displays the truth that a $0.10 per share discrete tax profit we anticipated within the fourth quarter did not materialize.

We additionally incurred extra M&A prices than anticipated. As a reminder, each of these objects influence GAAP EPS and never adjusted EPS. However, adjusted EPS of $4.96 got here in above our $4.80 to $4.90 steerage vary. This was primarily attributable to lower-than-expected tax and curiosity expense.

JBT’s full-year 2019 free money circulation was beneath steerage at $83 million, primarily attributable to higher-than-anticipated accounts receivable and stock ranges at AeroTech. In gentle of the provision chain challenges and shortages AeroTech confronted in 2018, we overcompensated in 2019 and didn’t deplete the stock by year-end, as anticipated. When it comes to accounts receivable, some anticipated giant buyer funds rolled into the primary quarter of 2020. Wanting forward, we’re making use of the JBT working system problem-solving device set to deal with the problem and higher align AeroTech’s stock with demand.

As such, we’re committing to free money circulation conversion of greater than 100% in 2020 and improved money circulation efficiency within the first quarter of 2020 in contrast with the year-ago interval. Taking a step again, our restructuring actions together with the implementation of the JBT working system have enhanced JBT’s effectivity and profitability. After we take a look at margins versus our pre-restructuring baseline yr of 2017, JBT’s adjusted EBITDA margins have expanded from 12% to 15%, predominantly attributable to these operational enchancment efforts, together with the advantage of growing our mixture of recurring income. This progress is forward of the tempo outlined in our Elevate technique framework regardless of the difficult industrial financial setting.

Let me now transition to steerage for 2020, which is topic to uncertainties associated to the influence from the coronavirus. For the yr, we anticipate whole JBT income progress of three% to 4%. That features FoodTech flat natural efficiency, a $0.04 profit from accomplished acquisitions and a 0% to 1% headwind from international change. At AeroTech, we anticipate natural progress of three% to 4%.

Whereas we anticipate FoodTech natural income to be down mid-single digits yr over yr within the first half of 2020, its income might be bolstered by the Proseal and Prime acquisitions accomplished in mid-2019. We anticipate FoodTech natural progress will choose up within the second half of 2020 based mostly on forecasted order circulation. For AeroTech, we foresee sturdy first-half natural income features in 2020, together with stable double-digit progress in Q1 with a flattish again half of the yr versus 2019, given the harder comps. When it comes to profitability, we anticipate adjusted EBITDA margins to develop additional to 19.5% to 20.5% at FoodTech and 14.5% to 15.5% AeroTech.

JBT’s steerage for full-year diluted earnings per share is $4.95 to $5.15 on a GAAP foundation and $5.15 to $5.35 on an adjusted foundation. We’re forecasting adjusted EBITDA of $315 million to $325 million, which represents a year-over-year achieve of roughly 10% on the midpoint. For the primary quarter, we anticipate income of $440 million to $445 million, reported EPS of $0.68 to $0.73, and adjusted EPS of $0.75 to $0.80. With that, I will flip the decision again to Tom.

Tom GiacominiChairman, President, and Chief Government Officer

Thanks, Brian. As lots of you realize, we lately attended the 2020 Worldwide Manufacturing and Processing Expo, in any other case generally known as the poultry present. Whereas the full buyer enthusiasm was not as upbeat because the 2018 present, it was extra optimistic than in 2019. Potential export market enchancment with the lifting of China’s restriction on U.S.

poultry ought to bolster trade prospects. Talking of China with the outbreak of the coronavirus, the well being and security of our workers within the area is of utmost significance and we’re actively working to mitigate danger. We’re additionally involved in regards to the potential influence of coronavirus as provide chain and common enterprise disruptions may very well be a headwind for JBT. We lately sought suggestions from various clients within the area.

The suggestions had indicated that deliberate investments for 2020 had been nonetheless transferring ahead, though at a slower tempo, given present difficulties interfacing with finish clients in China. If the trajectory of the virus was to worsen, these deliberate investments in 2020 may very well be delayed into the following yr. Long term, this case is prone to speed up China’s adoption of contemporary and protected meals processing practices, growing alternatives for JBT. As for geographic traits extra broadly.

At FoodTech, Asia continued to strengthen within the fourth quarter, significantly demand for meals preservation applied sciences. Europe was secure with the prepared meals and comfort markets having fun with larger progress. North America continued to be impacted by enterprise uncertainty and U.S. poultry producers battling low costs.

However as I discussed, this might enhance with exports to China. At AeroTech, we’re experiencing very sturdy traits on the fastened tools aspect, pushed by airport infrastructure funding. The navy market is increasing. Situations are a bit tougher on the cellular aspect because the commerce wars have affected industrywide airfreight demand.

Let me change gears and discuss in regards to the three acquisitions we accomplished in 2019: LEKTRO, Proseal and Prime. All three are working effectively as a part of JBT. On a strategic foundation, every enhances and expands the options JBT gives for our clients. Furthermore, all three assist our clients’ concentrate on environmentally pleasant options.

LEKTRO’s electrical aviation floor assist tools reduces environmental footprint with emissions-free tools. Proseal’s commerce sealing know-how gives packaging that minimizes using plastics, whereas decreasing meals waste by extending the product shelf life; and Prime’s poultry processing options present for water reuse, thus minimizing use of a precious useful resource. I’ve additionally indicated the significance of the energy of JBT’s recurring income stream, which represented 41% of JBT’s income in 2019. At FoodTech, it was 44% of income.

One necessary consider our success is PRoCARE service contacts and PRoCARE powered by iOPS, our Web of Issues initiative that gives cloud-based real-time operations monitoring. In 2019, PRoCARE income expanded some 40% yr over yr with elevated penetration within the put in base and new tools gross sales. Whereas PRoCARE remains to be a small proportion of recurring income, it is enlargement advantages our clients in JBT. With common service visits, PRoCARE optimizes system yield and uptime for our clients.

For JBT, PRoCARE’s contracts allow us to function our service group extra effectively. Wanting past 2020, we stay optimistic in regards to the secular progress alternatives for JBT with an annual natural progress of 4% to six% by means of the cycle and whole progress of 10% with acquisitions. Our rising recurring income stream gives larger margins and stability. We stay dedicated to an energetic and disciplined M&A program that enhances our aggressive place.

Lastly, we anticipate to proceed to seize margin enlargement throughout each our companies. With that, we’ll open the decision to your questions. Operator?

Questions & Solutions:

Operator

[Operator instructions] Our first query comes from Mig Dobre with R. W. Baird. Your line is open.

Joe GrabowskiRobert W. Baird and Firm — Analyst

Hey, good morning, everybody. That is Joe Grabowski on for Mig this morning.

Tom GiacominiChairman, President, and Chief Government Officer

Good morning.

Brian DeckGovernment Vice President and Chief Monetary Officer

Good morning, Joe.

Joe GrabowskiRobert W. Baird and Firm — Analyst

Hey, good morning. So should you’re assuming destructive mid-single-digit natural progress in FoodTech within the first half, I suppose, type of mathematically, you are assuming optimistic mid-single-digit within the second half. Is that principally only a perform of simpler comparisons within the second half? You talked about forecasted order traits. What are you seeing within the second half? Are you anticipating underlying demand to enhance? Or once more, is it simply type of the simple comparisons?

Tom GiacominiChairman, President, and Chief Government Officer

I might say it is extra in regards to the trajectory of the orders. We had some difficult order situations within the again half of 2019, second and third quarter specifically, and we see some delicate enchancment by means of this yr that can permit us to get better that natural progress charge within the again half of the yr. And that is sort of what we talked about by way of our view of the enterprise on the final name additionally.

Joe GrabowskiRobert W. Baird and Firm — Analyst

Is it a perform of the orders you noticed within the fourth quarter? Or orders that you simply’re anticipating within the first half that can convert to shipments within the second half?

Tom GiacominiChairman, President, and Chief Government Officer

Certain. It is actually — the fourth quarter was a profit to assist us get a begin on the yr however we anticipate to guide some stable orders within the entrance half of 2020 additionally.

Joe GrabowskiRobert W. Baird and Firm — Analyst

Nice, OK. After which, I suppose, my follow-up query, the $20 million of restructuring financial savings, incremental restructuring financial savings anticipated in 2020, how do these type of circulation by quarter? And may you simply verify, are the entire $20 million incremental financial savings in FoodTech?

Brian DeckGovernment Vice President and Chief Monetary Officer

So of the $20 million, there’s nonetheless an honest quantity for AeroTech, pretty akin to the income between Meals and Aero. You will see slightly bit extra financial savings within the entrance half, primarily as a result of now we have some success within the again half of the yr with the financial savings coming in and the success of these packages on a comparable foundation will successfully be within the numbers by Q2, perhaps into Q3.

Joe GrabowskiRobert W. Baird and Firm — Analyst

OK, all proper. I will depart it there. Thanks for taking my questions.

Tom GiacominiChairman, President, and Chief Government Officer

Yeah. Thanks.

Operator

Our subsequent query comes from George Godfrey with C.L. King. Your line is now open.

George GodfreyC.L. King and Associates — Analyst

Thanks. I wished to — we spend plenty of time on FoodTech, however I wished to type of discuss in regards to the AeroTech for a second there, Tom. The expansion charge or the natural progress charge can be nonetheless a great quantity right here in 2020. However, clearly, it has been coming down.

Do you get the sense that we’re on the infrastructure build-out that got here out of the post-financial disaster has been accomplished and now every year, the natural progress goes to pattern extra to a world GDP like progress within the mid-teen digit progress that’s in all probability behind us? Thanks.

Tom GiacominiChairman, President, and Chief Government Officer

Certain. I might say, George, it is extra round — we have had some good restoration in our AeroTech enterprise, which has helped present these outsized progress charges within the prior years. I nonetheless see various years of constant infrastructure funding. You’ll be able to see it within the airports round you, so that can proceed to propel us.

The opposite two parts of AeroTech, the cellular, that tends to be a shorter guide and ship kind of enterprise. We have loved some explicit energy, significantly as a good thing about e-commerce. However there’s been a little bit of a headwind within the again half of final yr and into this yr that we’re seeing simply by way of materials circulation by air being a bit slower. And positively, the coronavirus scenario does not assist that proper now.

After which the navy, which we proceed to spend money on actually groundbreaking applied sciences which have nice monetary efficiency and that franchise continues to construct. So total, I might say we proceed to be fairly optimistic about AeroTech and it is just a few — following a few years of actually exterior progress, it will get to be powerful to start out lapping these comparables. Nevertheless it’s an excellent franchise and we actually take pleasure in proudly owning that and having that a part of our enterprise.

George GodfreyC.L. King and Associates — Analyst

Understood, and thanks. And simply to comply with up, that you simply take pleasure in proudly owning that, is the strategic match for the exercise stage on perhaps promoting or divesting that enterprise? Is that fairly chilly proper now? Or is there exercise? There’s all the time ongoing dialogue. Are you able to simply quantify on the place you see the following three to 5 years for JBT FoodTech versus AeroTech and the way the corporate is constructed? Thanks.

Tom GiacominiChairman, President, and Chief Government Officer

Certain. We did fairly a bit of labor on understanding and we all the time take a look at our portfolio and the work we have performed this final yr, George has instructed us that the best creation for our shareholders is AeroTech being a part of our portfolio and we’re optimistic and bullish about that, and transferring ahead as we talked about into 2020 with AeroTech as a part of JBT. And we’re trying ahead to having it proceed to be a value-creating a part of our providing.

George GodfreyC.L. King and Associates — Analyst

Nice, Thanks, Tom.

Tom GiacominiChairman, President, and Chief Government Officer

Thanks.

Operator

Our subsequent query comes from Andrew Obin with Financial institution of America. Your line is now open.

David Ridley-LaneFinancial institution of America Merrill Lynch — Analyst

Hello, that is David Ridley-Lane on for Andrew Obin. Questioning how your M&A pipeline appears for 2020. Are potential sellers much less prepared to come back to the desk given market situations?

Tom GiacominiChairman, President, and Chief Government Officer

Certain. As you realize, at JBT, now we have a really disciplined and energetic M&A program that we proceed working at, at each quarter and yearly. We proceed to see a wealthy pipeline and strategic additions to the JBT franchise that basically permit us to supply extra complete and value-creating options for our clients. As we take a look at the sense of the pipeline, I have not observed a retreat of willingness of the folks we’re speaking to, to have interaction in these significant conversations.

And I might say from JBT’s perspective, we’re additionally being considerate about how we take into consideration valuations and the way the companies will carry out submit acquisition. And in my earlier feedback, we proceed to see a capability for JBT to do M&A by means of the cycle and create worth. I’ll say now we have expectations, as Brian talked about, to generate a big amount of money in 2020. So we actually have the flexibility to finish some good M&A this yr with out having the necessity to improve our leverage.

And we, clearly, have capability past that however we’re in a great place. We stay disciplined and we’re all the time actively working that pipeline.

David Ridley-LaneFinancial institution of America Merrill Lynch — Analyst

OK. And simply following on that money remark, thanks for the colour on fourth-quarter free money circulation. Ought to we consider the $15 million or so working capital shortfall actually exhibiting up subsequent yr? Or doesn’t all of that present up subsequent yr? Thanks.

Brian DeckGovernment Vice President and Chief Monetary Officer

Proper. So we do anticipate some enchancment within the working capital efficiency in 2020, significantly on the stock aspect as we use our JBT working system instruments to higher downside remedy and work by means of that. So I do see our stock performing higher. And once you take a look at our accounts receivable, that is going to be extra of a perform of the expansion of the enterprise.

So there may very well be, relying on the expansion, it may very well be a use of money. And I do see on the client deposit aspect, if we do certainly see some advantages of bettering orders, we might see a profit there as effectively.

David Ridley-LaneFinancial institution of America Merrill Lynch — Analyst

OK. And if I might squeeze in a single final one, what does your 2020 steerage suggest for aftermarket income combine in FoodTech? I do know that was very sturdy in 2019, does steerage ponder maybe a few of that returning to extra normalized ranges? Thanks.

Brian DeckGovernment Vice President and Chief Monetary Officer

Proper. In order you realize, the second and third quarters had been significantly sturdy on the combo, fourth quarter was slightly bit extra heavy on the tools aspect versus these prior quarters. I might say we’re anticipating to go slightly bit extra again to a normalized charge in 2020. I might say it was slightly heavy on the aftermarket aspect in 2019.

That was slightly bit extra normalization subsequent yr.

David Ridley-LaneFinancial institution of America Merrill Lynch — Analyst

Thanks very a lot.

Tom GiacominiChairman, President, and Chief Government Officer

Thanks.

Operator

Our subsequent query comes from Steve Tusa with JP Morgan. Your line is now open.

Steve TusaJ.P. Morgan — Analyst

Hey, good morning, guys.

Tom GiacominiChairman, President, and Chief Government Officer

Good morning.

Brian DeckGovernment Vice President and Chief Monetary Officer

Good morning.

Steve TusaJ.P. Morgan — Analyst

Possibly if we might begin off on free money circulation. Are you able to guys bridge us from 2019 to 2020, the $83 million to the $160 million? I do know adjusted EBITDA goes up $30 million-ish. Simply wished to sort of bridge to the remainder of the development. I assume restructuring is part of it and dealing capital.

However should you might assist us bridge that that will be useful.

Brian DeckGovernment Vice President and Chief Monetary Officer

Certain. In order a place to begin, as you talked about, with our web earnings, beginning on the prime of that money circulation assertion within the, name it the low to mid 160s based mostly on our steerage, that is someplace within the vary of $30 million, $35 million pickup, simply to start out in {dollars}. After which, simply as a reminder in 2019, we had $15 million of restructuring money that was expensed in 2018 however paid in 2019. So there’s one other $15 million on prime of that.

After which as I discussed, I do suppose our stock might be a supply of money in 2020. However I do suppose — and I believe the deposits can even be a supply of money for the yr. So we add all these issues up, you are one thing north of the $160 million of web earnings turning into money circulation.

Steve TusaJ.P. Morgan — Analyst

OK, received it. So it is a mixture of these issues. Is smart. Possibly switching gears on FoodTech margins within the fourth quarter.

Why had been they — I believe they had been down yr over yr. Simply curious it appears slightly bit decrease than anticipated. What drove the variance?

Brian DeckGovernment Vice President and Chief Monetary Officer

Certain. There’s two issues. One, there was an honest quantity of incentive compensation as we true-up all these accruals for the yr. Clearly, we had a would take a very nice yr this yr, profitability.

And should you take a look at This autumn of final yr, you sort of had the alternative impact. So there’s sort of a double whammy pickup there. But additionally, equally by way of influence, we did have, I might say within the quarter, extra of an tools heavier combine versus the This autumn of final yr. After which I might even say throughout the tools, we had some decent-sized orders that had been slightly bit decrease margin inside that blend.

However total, with the restructuring advantages, and so forth., we’re one other 100 foundation factors of margin enlargement for FoodTech subsequent yr. So we expect we’re effectively on tempo with our Elevate technique that we have outlined.

Steve TusaJ.P. Morgan — Analyst

Obtained it. And perhaps additionally, final one for me on the M&A price, so what can be just like the sorts of M&A prices you guys report in company?

Brian DeckGovernment Vice President and Chief Monetary Officer

Certain. So we do have M&A prices in each the enterprise models and in company. So sometimes, if it is, I will name it a extra enterprise unit sponsored deal, they will have their bills, in addition to all of the stock step-up results in the enterprise models and the opposite transaction and integration bills. At company, we principally home all of the diligence bills.

So we do outsource our monetary due diligence. That is a giant one, sometimes, the entire lawyer prices are typically at company. After which typically we’ll do third-party market research that will even be at company. So on this previous, the banking charges and banking charges, if there’s any.

So within the final quarter, we did have a very energetic quarter on M&A exercise out of the company perform. So it was only a very busy quarter, which drove up a few of these bills that we had not beforehand anticipated after we gave steerage after the third quarter.

Steve TusaJ.P. Morgan — Analyst

OK, nice. Recognize the colour.

Tom GiacominiChairman, President, and Chief Government Officer

Yeah. Thanks, Steve.

Operator

[Operator instructions] Our subsequent query comes from Larry De Maria with William Blair. Your line is open.

Larry De MariaWilliam Blair and Firm — Analyst

Hello. Thanks. Good morning, everyone.

Tom GiacominiChairman, President, and Chief Government Officer

Good morning, Larry.

Larry De MariaWilliam Blair and Firm — Analyst

Only a clarification — hey, good morning, guys. A clarification on the aftermarket sort of returning to regular progress in FoodTech. Does that type of suggest extra like mid-single-digit aftermarket progress and destructive OE natural for 2020?

Brian DeckGovernment Vice President and Chief Monetary Officer

Damaging natural on the tools, is that what you are saying? I am sorry.

Larry De MariaWilliam Blair and Firm — Analyst

Sure. Sure.

Brian DeckGovernment Vice President and Chief Monetary Officer

Sure, actually within the entrance half, you’d see destructive natural progress on the tools and slightly bit extra aftermarket combine within the entrance half. I believe because the again half goes, I believe you may have a stronger mixture of the tools and offsetting a number of the profit that we’d in any other case see within the entrance half.

Larry De MariaWilliam Blair and Firm — Analyst

OK, thanks. Because it pertains to the FoodTech orders, clearly, in current quarters, you talked about pushouts, longer conversion time to transform to orders, and so forth. Is the market getting slightly bit extra regular? Are there closure instances and conversion instances getting shorter? And thus, your optimism on the first-half order trajectory? Or are we nonetheless experiencing a few of that uncertainty out there?

Tom GiacominiChairman, President, and Chief Government Officer

Yeah, Larry, I might say, we actually loved a greater closure charge within the fourth quarter, which was the interpretation of all these initiatives that we discuss in our pipeline turning into agency with the dedicated orders from our clients. And though we might nonetheless describe the market situations not again to regular, our expectation is to get to our back-half enchancment in FoodTech is delicate enchancment within the markets however not something getting again to regular. However I’ll say that even inside some tough markets, JBT continues to innovate on the product entrance, now we have — our promoting exercise continues to be extra sharpened. And so even inside some difficult market situations, there are some issues we will do to have an effect on a greater end result that we’re targeted on.

And as an organization, we all the time attempt to get higher. And we put these elements collectively, and that is how we got here to the information this yr. I might let you know that we aren’t able we’re declaring the markets are again to regular otherwise you would see a a lot greater ramp on these orders and our revenues than what we’re at the moment guiding to.

Larry De MariaWilliam Blair and Firm — Analyst

OK, understood. However only one extra in right here. Simply to make clear your feedback on AeroTech, are we taking that the concept to probably, finally spinning or monetizing AeroTech off the desk? Or is that also a chance, given the suitable circumstances?

Tom GiacominiChairman, President, and Chief Government Officer

Yeah, Larry, as you realize, at JBT, after we analyze our enterprise, our portfolio, how we go to market, we all the time look by means of the eyes of the shareholder and the lens of worth creation. And from our perspective, we are going to proceed to judge. However I might additionally say that with the work we have performed, that at the moment, we consider one of the best worth creation as a part of JBT, however we’ll all the time proceed to judge what is sensible and creates probably the most worth for our shareholders and permits us to be one of the best accomplice to our clients.

Larry De MariaWilliam Blair and Firm — Analyst

OK, understood. Thanks, and good luck this yr.

Tom GiacominiChairman, President, and Chief Government Officer

Thanks.

Operator

There are not any questions presently. Mr. Tom Giacomini, I flip the decision again over to you.

Tom GiacominiChairman, President, and Chief Government Officer

Our accelerated new product growth efforts, investments in constructing our aftermarket franchise and strategic M&A program are higher positioning JBT to be a extra precious options supplier to our clients. Thanks once more for becoming a member of us this morning.

Operator

[Operator signoff]

Length: 34 minutes

Name contributors:

Megan RattiganVice President of Investor Relations

Tom GiacominiChairman, President, and Chief Government Officer

Brian DeckGovernment Vice President and Chief Monetary Officer

Joe GrabowskiRobert W. Baird and Firm — Analyst

George GodfreyC.L. King and Associates — Analyst

David Ridley-LaneFinancial institution of America Merrill Lynch — Analyst

Steve TusaJ.P. Morgan — Analyst

Larry De MariaWilliam Blair and Firm — Analyst

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