Generac 2Q sales increase 4.6%

By Kirsten Klahn - Special to The Freeman

August 1, 2014

The world headquarters of Generac Power Systems Inc. begins work
on its $8-10 million expansion in 2012.

Freeman file photo

WAUKESHA - Generac Holdings Inc., a generator manufacturer, said Thursday its second-quarter net sales increased 4.6 percent.

The company said its net sales increased to $362.6 million compared to $346.7 million in the second quarter of 2013. The company attributed the increase to acquisitions and higher sales in the commercial and industrial market.

“Our second quarter results for residential products were seasonally higher as we saw shipments increase as compared to the first quarter of 2014 due to strength in home standby generators. We remain focused on a number of key initiatives to continue to grow the market, further building on our leadership position in this product category,” said Aaron Jagdfeld, president and chief executive officer.

Generac’s commercial and industrial product sales increased 22.5 percent to $163.5 million compared to $133.4 million in the prior-year second quarter. Additionally, its product sales dropped 8.6 percent to $179.6 million.

Net income for the second quarter was $54 million, or 77 cents per share, compared with $28.3 million, or 40 cents per share, during the same period last year.

Excluding a one-time $16 million gain on a contract that reduced borrowing costs, adjusted net income declined 14 percent to $57.1 million, or 82 cents per share, from $66.6 million, or 95 cents per share, the year before.

For the full fiscal year, Generac is expecting its net sales to increase in the mid-single digit range, compared to the prior year.