HARVEY, Ill. - Atkore Inc. (NYSE: ATKR), a prominent manufacturer of electrical products, disclosed today that David Johnson will resign as Vice President, Chief Financial Officer, and Chief Accounting Officer, effective August 9, 2024.
He plans to leave the electrical industry for a new career opportunity. Atkore has named John Deitzer as the new Vice President and Chief Financial Officer, and James Alvey will take on the role of Chief Accounting Officer following Johnson's departure.
Bill Waltz, President and CEO of Atkore, expressed gratitude for Johnson's significant contributions over his six-year tenure, highlighting the establishment of a balanced capital deployment model that has supported the company's growth through acquisitions, investments, and shareholder returns. Waltz anticipates a seamless transition, praising the incoming executives for their qualifications and ability to assume their new responsibilities.
Johnson, reflecting on his time with Atkore, noted the company's strong positioning for future success, driven by its strategic vision and continuous improvement processes. He expressed confidence in Deitzer and Alvey's capabilities to take over their roles effectively.
John Deitzer brings over 19 years of experience in finance, having held roles in investor relations, treasury, and corporate strategy. He joined Atkore in 2019 and has since been responsible for various initiatives, including environmental, social, and governance efforts. His previous experiences include positions at Alcoa (NYSE:AA) Corporation and PPG Industries (NYSE:PPG), and he holds an MBA from Carnegie Mellon University.
James Alvey, with the company for four years and recently serving as Corporate Controller, has been appointed as Chief Accounting Officer. He will maintain oversight of corporate accounting and compliance, as well as Accounting Shared Services.
Alvey's background includes over a decade at Ernst & Young and service in the United States Army, where he received a Bronze Star Medal. He holds a Master of Science in Accounting from Oklahoma State University.
Atkore, with 5,600 employees and $3.5 billion in sales for the fiscal year 2023, is recognized for delivering sustainable solutions in the electrical sector. This leadership change is based on a press release statement from Atkore Inc.
In other recent news, Atkore International Group (NYSE:ATKR) Inc. has shown impressive financial performance, surpassing initial projections with net sales of $793 million and an adjusted EBITDA of $212 million in fiscal Q2.
While there was a 1% year-over-year decline in organic volume, the company made strategic moves by repurchasing $150 million in shares and investing over $70 million in capital expenditures in the first half of the fiscal year. Atkore also introduced a new $500 million share repurchase program and distributed its first quarterly dividend.
KeyBanc has initiated coverage on Atkore, assigning an Overweight rating, with a price target of $175.00, suggesting a positive outlook for the company. KeyBanc's analysis aligns Atkore's strategic positioning with the broader trend towards electrification.
Citi, on the other hand, has reiterated its neutral rating on Atkore, maintaining cautious optimism following a meeting with the company's management. Despite challenges such as labor shortages and supply chain disruptions, the company's management remains confident in achieving an earnings per share of over $18 in fiscal year 2025. These are recent developments that underline Atkore's strategic approach to balancing operational improvements with capital deployment.
InvestingPro Insights
As Atkore Inc. (NYSE: ATKR) navigates through a significant leadership transition, investors and stakeholders might find it valuable to consider the company’s financial health and market performance. According to InvestingPro data, Atkore is currently trading at a low earnings multiple with a P/E ratio of 8.97 and an adjusted P/E ratio for the last twelve months as of Q2 2024 at 8.63. This valuation suggests that the stock may be undervalued relative to its earnings, which could be a point of interest for value investors.
The company’s stock price has experienced notable volatility, with a 3-month price total return of -19.5% as of the data available. Despite this, Atkore has maintained a robust gross profit margin of 36.52% over the last twelve months as of Q2 2024, indicating strong profitability in its operations.
One of the InvestingPro Tips highlights that management has been aggressively buying back shares, which can often be interpreted as a signal of confidence in the company’s future performance. Moreover, the company has a solid track record of profitability over the last twelve months and analysts predict it will remain profitable this year.
For those looking to delve deeper into Atkore’s financials and future outlook, InvestingPro offers more insights and tips, which can be accessed with a subscription. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are 11 additional InvestingPro Tips available for Atkore, providing a comprehensive analysis for informed decision-making.
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