Franklin Electric Reports Record Fourth Quarter and Full Year 2018 Sales and Earnings
Fort Wayne, IN – February 19, 2019 - Franklin Electric Co., Inc. (NASDAQ: FELE) reported fourth quarter 2018 GAAP fully diluted earnings per share (EPS) of $0.51, versus a GAAP fully diluted EPS in the fourth quarter 2017 of $0.17. Fourth quarter 2018 sales were $316.7 million, compared to 2017 fourth quarter sales of $288.2 million. Fourth quarter 2018 organic sales increased about 9 percent when excluding the impact of foreign currency translation. Fourth quarter EPS before the impact of restructuring expenses was $0.52 compared to 2017 fourth quarter EPS before restructuring of $0.21 (see table below for a reconciliation of GAAP EPS to EPS before restructuring). The Company incurred a tax expense of $0.21 per share in the fourth quarter of 2017 related to the U.S. Tax Cuts and Jobs Act of 2017. Before restructuring and the tax expense, the Company’s fourth quarter 2017 EPS was $0.42.
Gregg Sengstack, Franklin Electric’s Chairman and Chief Executive Officer, commented:
“Our record fourth quarter results were driven by continued strong performance in the U.S. Water Systems and our global Fueling Systems businesses. Before restructuring charges, our operating income and earnings per share grew by 17 and 24 percent, respectively, compared to the fourth quarter of 2017. Water margin improved; but Fueling margin declined from last year’s record margin, due to mix and cost pressures. Cash generation in the quarter was strong and reductions in working capital drove 2018 free cash flow to equal net income for the year.
For the full year 2018, we set new records in all our key financial metrics with all-time highs in net sales, gross profit, operating income, earnings per share and cash flow from operations. Despite continued headwinds from global economic and political uncertainties, we remain confident we can sustain this momentum into 2019.”
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