Franklin Electric Reports Fourth Quarter and Full Year 2017 Sales and Earnings
Fort Wayne, IN – February 20, 2018 - Franklin Electric Co., Inc. (NASDAQ: FELE) reported fourth quarter 2017 GAAP fully diluted earnings per share (EPS) of $0.17, versus a GAAP fully diluted EPS in the fourth quarter 2016 of $0.37. In the fourth quarter of 2017, the Company’s EPS was $0.21 before restructuring compared to 2016 fourth quarter EPS of $0.37 before restructuring (see table below for a reconciliation of GAAP EPS to EPS before restructuring). The Company incurred a tax expense of $0.21 per share related to the U.S. Tax Cuts and Jobs Act of 2017. Before restructuring and the tax expense associated with the U.S. Tax Cuts and Jobs Act of 2017, the Company’s fourth quarter 2017 EPS was $0.42.
Fourth quarter 2017 sales were $288.2 million, compared to 2016 fourth quarter sales of $239.6 million. The sales increase was primarily from acquisitions. Organic sales increased about 2 percent when excluding the impact of foreign currency translation.
Gregg Sengstack, Franklin Electric’s Chairman and Chief Executive Officer, commented:
“Our fourth quarter Water Systems operating income was below our expectations. We saw a signficant downturn in our business in Brazil, in large part due to the overall economic environment in that region. Our operating income before restructuring in Brazil was lower by over 60 percent versus the same quarter in 2016. We had modest revenue growth in our Water Systems businesses in Europe, Africa and Asia during the quarter. In North America, the recovery of oil and gas end markets nearly doubled our sales of dewatering pumps during the quarter while groundwater system sales declined about 9 percent, in line with our expectations, due to the intentional reduction of working capital in our distribution company, and a difficult comparison to a very strong fourth quarter in 2016.
Our Fueling Systems segment had another record quarter for sales and earnings with fourth quarter sales up 10 percent and operating income before restructuring up 20 percent versus the fourth quarter of 2016.
Considering seasonality and the disruption in the supply base, the sales of our U.S. Distribution segment were in line with our expectations.”
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