FRANKLIN ELECTRIC REPORTS RECORD 2011 SALES AND EARNINGS
Bluffton, Indiana – February 21, 2012 - Franklin Electric Co., Inc. (NASDAQ:FELE) reported fourth quarter 2011 diluted earnings per share of $0.50, an increase of 47 percent compared to 2010 fourth quarter diluted earnings per share of $0.34. Fourth quarter 2011 sales were $187.2 million, an increase of 7 percent compared to 2010 fourth quarter sales of $175.0 million.
For the full year 2011, diluted earnings per share were $2.65, an increase of 61 percent compared to 2010 diluted earnings per share of $1.65. Adjusted earnings per share were $2.70, an increase of 42 percent versus the $1.90 adjusted earnings per share in 2010 (See the table below for a reconciliation of the GAAP EPS to the adjusted EPS). Full year 2011 sales were $821.1 million, an increase of 15 percent compared to 2010 sales of $713.8 million.
Scott Trumbull, Franklin Chairman and Chief Executive, commented:
“The fourth quarter was a fitting end to a great year for Franklin Electric. In the fourth quarter, our adjusted earnings per share increased by 35 percent and the adjusted operating income as a percent of sales improved by 90 basis points versus the fourth quarter of 2010 as operating leverage on higher sales more than offset the impact of increased raw material costs.
For the full year 2011adjusted net income of $64.3 million and adjusted earnings per share of $2.70 were the highest for any year in the Company’s history and we achieved these record results while still investing in our future as our Research, Development and Engineering (RD&E) spending increased by 23 percent versus the prior year.
While our financial statistics for the quarter and the year were excellent, we were also pleased with the progress we made on our four key strategic goals:
- We continued to increase our sales base in high growth developing regions. Our developing region sales increased by 18 percent in 2011 and now represent 36 percent of our consolidated sales.
- We continued to improve our cost and quality position as we consolidated more production into our world class Linares, Mexico manufacturing complex and we laid the groundwork for the construction of a new production and technical facility in Brazil.
- We continued to gain share in the North American water systems pump market. We’ve only been in the North American groundwater pump market for six years, and we have already achieved a leading market position, but we still have great headroom for additional 2 growth in this highly competitive market as more contractors convert to the Franklin brand and as we expand our product offering.
- Our fourth strategic objective is to develop more new products that provide a prepackaged systems solution for our customers. These new products will provide a simplified installation and better value for our customers while featuring more Franklin technology and providing us significantly higher revenues per installation. We initiated beta testing of two new packaged systems product lines in 2011, an oil and gas well dewatering system and a solar powered water well
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