FRANKLIN ELECTRIC REPORTS RECORD FOURTH QUARTER 2015 EARNINGS
Fort Wayne, Indiana – February 23, 2016 - Franklin Electric Co., Inc. (NASDAQ:FELE) reported fourth quarter 2015 adjusted earnings per share (EPS) of $0.35, a record for any fourth quarter, compared to 2014 fourth quarter adjusted EPS of $0.31, a 13 percent increase (see table below for a reconciliation of GAAP EPS to the adjusted EPS). In the fourth quarter of 2015, the Company’s GAAP fully diluted EPS was $0.33, also a record for any fourth quarter, up 450 percent to the GAAP fully diluted EPS of $0.06 from the fourth quarter of 2014. The GAAP fully diluted EPS in the fourth quarter of 2014 included a restructuring charge of $0.22 per share related to rationalizing our European manufacturing footprint.
Fourth quarter 2015 sales were $219.3 million, a decrease of 14 percent compared to 2014 fourth quarter sales of $253.8 million. The Company’s organic sales decline was 5 percent excluding acquisitions and the impact of foreign currency translation.
Gregg Sengstack, Franklin Electric’s Chairman and Chief Executive Officer, commented:
“We are pleased to report that our earnings for the fourth quarter were a record for any fourth quarter in the Company’s history. The top line impact of the strong dollar and the weak price of oil and other commodities was offset by margin expansion due to reductions in fixed costs, variable compensation expense, input costs and pricing. After non-GAAP adjustments, Water Systems operating income declined 2 percent on a 17 percent sales decline, and Fueling Systems operating income increased 8 percent on a 2 percent sales decline. Excluding the impact of foreign exchange and the decline in the price of oil, sales were flat compared to the fourth quarter 2014. Demand in our U.S. water business remains weak; however, we saw a slight sequential improvement in the year-over-year quarterly decline. Organic sales in developing regions were positive.”
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