US produce company Calavo Growers has appointed its former finance chief B. John Lindeman as its new CEO. Lindeman will succeed Lee Cole, who will retire as president and CEO on 8 December. Founded in 1924, the company processes and distributes avocados, tomatoes and papayas, along with guacamole under the Calavo brand. Kathleen Holmgren, chair of the board of directors at Calavo, said: “On behalf of the Board and the entire Calavo family, I want to express our deep gratitude to Lee for his decades of o ...

Core Viewpoint - Matthews International Corporation has signed a definitive agreement to sell its Warehouse Automation business to Duravant LLC for a total consideration of $230 million, which includes cash and the assumption of certain liabilities, aimed at reducing debt and enhancing shareholder value [1][2][3] Financial Details - The total consideration for the sale is $230 million, comprising cash of $223.3 million and the assumption of certain liabilities [2] - The Warehouse Automation business generated sales of $72 million for fiscal 2025 [2] - Proceeds from the transaction will be primarily used to significantly reduce outstanding debt, thereby strengthening the company's balance sheet [2][6] Strategic Implications - The transaction is part of the company's ongoing strategic alternatives review aimed at unlocking shareholder value and reducing debt towards a long-term net leverage ratio goal of 2.5x [3] - The sale is expected to close before the end of the second quarter of fiscal 2026, pending regulatory approval [3] Company Overview - Matthews International operates through two core global businesses: Industrial Technologies and Memorialization, focusing on operational efficiency and long-term growth [4] - The Industrial Technologies segment is a leading global innovator in precision technologies and intelligent processes [4] - The Memorialization segment provides memorialization products to cemetery and funeral home customers [4] About Duravant - Duravant is a global leader in advanced automation solutions, serving essential end markets including food processing, packaging, and material handling [5] - The company operates in over 190 countries and is committed to quality, innovation, and customer success [5]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $562 million, down approximately 6% on an organic basis compared to the previous year [19][23] - Adjusted EBITDA for the quarter was $65 million, with adjusted diluted loss per share at $0.22, excluding unusual items [19][23] - Adjusted free cash flow for the quarter was a negative $14 million, expected to improve in Q3 and Q4 [25][33] Business Line Data and Key Metrics Changes - Clean Earth reported revenues of $246 million, up 4% year-over-year, with adjusted EBITDA reaching $25 million, up 5% [27] - Harsco Environmental's revenues totaled $258 million with adjusted EBITDA of $40 million, impacted by divestitures and lower service levels [25][26] - Rail revenues were $58 million with an adjusted EBITDA loss of $3 million, attributed to lower volumes and unfavorable product mix [29] Market Data and Key Metrics Changes - The U.S. steel market showed a modest uptick in volumes due to added trade protections, but overall volumes remained flat [12][26] - Demand for standard equipment and parts in the Rail segment has slowed considerably, with year-to-date orders down more than 30% [14][30] Company Strategy and Development Direction - The company is evaluating strategic alternatives to unlock value, including a potential sale or separation of the Clean Earth business [7][8] - Focus on stabilizing the Rail segment while continuing to invest in new service capabilities and building a strong business pipeline in Clean Earth [8][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential for improved results in the second half of the year, particularly in Harsco Environmental due to new sites and cost reduction initiatives [12][54] - The company has lowered its outlook for the year due to challenges in the Rail segment, but remains optimistic about the overall earnings and cash flow potential [17][33] Other Important Information - The company is undergoing a formal evaluation of its business portfolio with the assistance of advisors, focusing on options that may unlock value sooner [8][9] - Adjustments in forward loss provisions at Harsco Rail were primarily due to revisions in estimated costs to complete contracts [63] Q&A Session Summary Question: Is the reduced outlook driven entirely by Rail? - The reduction in outlook for EBITDA and free cash flow is entirely due to the reduction in Rail, stemming from demand and market issues [39][40] Question: What is the impact of tariffs on Clean Earth? - No direct impact from tariffs has been observed; volume trends in the hazardous waste business remain strong [42] Question: What is driving the expected improvement in Harsco Environmental margins? - New sites ramping up and cost reduction initiatives are expected to contribute to margin improvement in the second half of the year [54] Question: How long do down cycles in Rail typically last? - The current down cycle is expected to be shorter-lived, as it is not indicative of a recession but rather a temporary cutback in spending by customers [56] Question: What prompted the Board to consider strategic options now? - The persistent discount to the sum of parts value and increased confidence in potential outcomes prompted the strategic review [61][62] Question: Can you provide details on the forward loss provisions at Harsco Rail? - The charges relate to Network Rail and SBB, with adjustments based on revised cost estimates to complete contracts [63]