FRANKLIN ELECTRIC REPORTS FOURTH QUARTER 2014 SALES AND EARNINGS
Fort Wayne, Indiana – February 24, 2015 - Franklin Electric Co., Inc. (NASDAQ:FELE) reported fourth quarter 2014 adjusted earnings per share (EPS) of $0.31 compared to 2013 fourth quarter adjusted EPS of $0.30, up 3 percent to last year (see table below for a reconciliation of GAAP EPS to the adjusted EPS). In the fourth quarter of 2014, the Company’s GAAP fully diluted EPS was $0.06, which was down 78 percent to the GAAP fully diluted EPS from the fourth quarter of 2013.
Fourth quarter 2014 sales were $253.8 million, an increase of 10 percent compared to 2013 fourth quarter sales of $229.7 million and a record for any fourth quarter in the Company’s history. The Company’s organic sales growth was about 10 percent excluding acquisitions and the impact of foreign currency translation.
Gregg Sengstack, Franklin Electric’s Chief Executive Officer, commented:
“We ended 2014 with broad based revenue growth across our Company. We saw solid growth in our Water Systems segment from our businesses in Latin America, Southern Africa, and from our Pioneer mobile de-watering unit.
“Despite the revenue growth, our Water Systems adjusted operating income declined in the quarter primarily as a result of higher global raw material costs, higher marketing and selling costs in our U.S. and Canada commercial business and, to a lesser extent, due to the continued sales mix shift to surface pumping equipment away from groundwater pumping equipment.
“Our Fueling Systems business contributed solid results in the quarter with revenues growing organically by nearly 13 percent and adjusted operating income increasing by 10 percent. “During the fourth quarter we completed a number of international tax planning initiatives that have significantly reduced our effective tax rate. Additionally, we also have taken the majority of the charges for the European restructuring actions primarily related to our Wittlich, Germany plant closure that was announced last year. So, after considering the lower Water Systems operating income, the outstanding performance by Fueling Systems, our lower tax rate and the restructuring actions, our adjusted earnings per share grew to $0.31 per share or about 3 percent from the fourth quarter of 2013.”
The financial information on this page about Franklin Electric Co., Inc. has previously been made available for public dissemination through press releases. The placement of such press releases on this particular page of the Franklin Electric Company website is intended to set apart and distinguish financial information from other non-financial information found on this site, including product, service, marketing and technical information. Regardless of the language used and the resulting interpretations that may or could be reached, such product, service, marketing, technical, and/or any other information found within other pages of this site should in no way be construed to be financial in nature or represent the past, current or future financial results of Franklin Electric Co., Inc.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. Any forward looking statements contained herein involve risks and uncertainties, including but not limited to, general economic and currency conditions, various conditions specific to the Company's business and industry, market demand, competitive factors, supply constraints, technology factors, government and regulatory actions, the Company's accounting policies, future trends, and other risks which are detailed in the Company's Securities and Exchange Commission filings. These risks and uncertainties may cause actual results to differ materially from those indicated by the forward-looking statements. We do not assume any obligation to update any forward-looking information. While we may elect to update the forward-looking statements at some point in the future, we specifically disclaim any obligation to do so.