L.B. Foster Company Announces Sale of Concrete Rail Tie Operations; Total Cash Proceeds From The Transaction Are Expected To Be ~$3M; Sees FY23 Net Sales $520M-$550M Vs $536.5M Est
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L.B. Foster Company (NASDAQ:FSTR) has announced the sale of its prestressed concrete railroad tie business to voestalpine Railway Systems Nortrak, LLC. The transaction, which includes all owned inventory and related fixed assets, is expected to generate approximately $3 million in cash proceeds. The sale does not materially impact the company's 2023 financial guidance, with net sales expected to range between $520 million and $550 million.
July 05, 2023 | 8:33 pm
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NEUTRAL IMPACT
The sale of L.B. Foster's concrete rail tie operations is expected to generate $3 million in cash proceeds. This transaction does not materially impact the company's 2023 financial guidance.
The sale of the concrete rail tie operations is a strategic move by L.B. Foster to streamline its operations. However, as the transaction does not materially impact the company's 2023 financial guidance, the short-term impact on the stock price is expected to be neutral.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 100