FRANKLIN ELECTRIC REPORTS THIRD QUARTER 2015 SALES AND EARNINGS
Fort Wayne, Indiana – October 27, 2015 - Franklin Electric Co., Inc. (NASDAQ:FELE) reported third quarter 2015 adjusted earnings per share (EPS) of $0.45 compared to 2014 third quarter adjusted EPS of $0.50, a 10 percent decrease (see table below for a reconciliation of GAAP EPS to the adjusted EPS). In the third quarter of 2015, the Company’s GAAP fully diluted EPS was $0.43, down 7 percent to the GAAP fully diluted EPS from the third quarter of 2014.
Third quarter 2015 sales were $232.5 million, a decrease of 16 percent compared to 2014 third quarter sales of $278.1 million. The Company’s organic sales decline was 7 percent excluding acquisitions and the impact of foreign currency translation.
Gregg Sengstack, Franklin Electric’s Chairman and Chief Executive Officer, commented:
“In the third quarter, the two principle factors behind our 16 percent revenue decline were the continued deterioration of foreign currencies against the U.S. dollar, and the impact of lower oil prices reducing oil well rig counts, and therefore sharply reducing demand for our Pioneer branded de-watering equipment. However, due to improved costs, sales mix and pricing, the decline in our adjusted operating income, of 17 percent, was significantly less than the decline in the second quarter 2015, and our adjusted operating income margin of 12.7 percent equaled the third quarter of last year.
Sequentially, versus the second quarter 2015, while revenues declined 6 percent, our adjusted operating income increased 18 percent, and, due to a favorable tax rate and a meaningful number of shares repurchased during the quarter, our adjusted earnings per share increased 29 percent.”
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