FRANKLIN ELECTRIC REPORTS FIRST QUARTER 2015 SALES AND EARNINGS
Fort Wayne, Indiana – April 28, 2015 - Franklin Electric Co., Inc. (NASDAQ:FELE) reported first quarter 2015 adjusted earnings per share (EPS) of $0.32 compared to 2014 first quarter adjusted EPS of $0.35, a 9 percent decrease (see table below for a reconciliation of GAAP EPS to the adjusted EPS). In the first quarter of 2015, the Company’s GAAP fully diluted EPS was $0.41 which was up 17 percent to the GAAP fully diluted EPS from the first quarter of 2014.
First quarter 2015 sales were $225.7 million, a decrease of 2 percent compared to 2014 first quarter sales of $231.4 million. The Company’s organic sales growth was 1 percent excluding acquisitions and the impact of foreign currency translation.
Gregg Sengstack, Franklin Electric’s Chief Executive Officer, commented:
“While our GAAP earnings per share were 17 percent higher than last year, our operating earnings were well below our expectations and guidance for two principal reasons: the material strengthening of the U.S. dollar and the dramatically lower price of oil. The impact of these two factors was greater than we originally forecasted and over shadowed our continued positive organic growth across many markets. Beyond currency translation, operating margins were further compressed in our business units outside the U.S. that purchase commodities or components in U.S. dollars. To recover margins we have taken pricing actions, are controlling fixed costs and are using our global sourcing network to reduce input costs.
Excluding the impact of foreign currency translation and lower Pioneer branded mobile pumping equipment sales that are used in upstream oil and gas development, our organic growth was 4 percent, led by our Water Systems businesses in several developing regions. With 5 percent organic growth, our Fueling Systems business posted another record quarter.
Finally, our reported earnings per share of $0.41 were positively impacted by the purchase of the remaining minority shares of Pioneer Pump that was completed in the quarter and resulted in the realization of certain tax benefits and other income.”
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