FRANKLIN ELECTRIC REPORTS SECOND QUARTER 2015 SALES AND EARNINGS
Fort Wayne, Indiana – July 28, 2015 - Franklin Electric Co., Inc. (NASDAQ:FELE) reported second quarter 2015 adjusted earnings per share (EPS) of $0.35 compared to 2014 second quarter adjusted EPS of $0.60, a 42 percent decrease (see table below for a reconciliation of GAAP EPS to the adjusted EPS). In the second quarter of 2015, the Company’s GAAP fully diluted EPS was $0.33, down 40 percent to the GAAP fully diluted EPS from the second quarter of 2014.
Second quarter 2015 sales were $247.4 million, a decrease of 13 percent compared to 2014 second quarter sales of $284.5 million. The Company’s organic sales decline was 8 percent excluding acquisitions and the impact of foreign currency translation.
Gregg Sengstack, Franklin Electric’s Chairman and Chief Executive Officer, commented:
“As we reported earlier this month, our earnings for the second quarter were well below our expectations and original guidance.
Well above average precipitation, and, in some regions of the United States, record precipitation, along with high inventory levels in distribution, reduced sales of our groundwater pumping systems by approximately 24 percent in the U.S., as compared to last year. These factors along with the continued weakness in the North America oil and gas sector, a strong U.S. dollar and a slowdown in our water business in Brazil, all contributed to our earnings decline in the quarter.
Despite the significant revenue headwinds in the United States, we are pleased with our overall Water Systems Sales performance in the developing world. When excluding the impact of foreign exchange and acquisitions, we achieved organic sales increases of 24 percent in Asia Pacific and 7 percent in both Latin America and the Middle East and Africa during the second quarter 2015.
As expected, our Fueling Systems revenues declined, most notably in India, China and Europe, but were partially offset by an 8 percent increase in the U.S. The lower second quarter revenue drove what was the first quarter over quarter decline in Fueling Systems earnings in 4 years. Outside of these markets, Fueling Systems revenues grew organically across all markets and product lines.”
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