Generac reports decline in sales

Special to The Freeman

Nov. 6, 2014

TOWN OF GENESEE — For its third quarter of fiscal 2014, Generac Holdings Inc. reported a decline of $11 million in sales compared to the same period last year.

The Town of Genesse-based designer and manufacturer of power generation equipment and other engine powered products reported financial results Thursday for its third quarter ended Sept. 30.

According to the report, net sales were $352.3 million during the third quarter of 2014 as compared to $363.3 million in the prior-year third quarter. Seeing a decline were residential product sales, which were $183.7 million during the third quarter of 2014 compared to $192.7 million during the third quarter of 2013, primarily due to a decline in portable generator sales and, to a lesser extent, shipments of home standby generators, according to Generac.

Net income during the third quarter of 2014 was $36.5 million, or $0.52 per share, as compared to $47.1 million, or $0.67 per share, for the same period of 2013. Adjusted net income, as defined in the accompanying reconciliation schedules, was $57.9 million, or $0.83 per share, as compared to $73.7 million, or $1.06 per share, in the third quarter of 2013.

“Home standby generator sales improved at a solid rate as compared to the second quarter of 2014, as we continue to build awareness and expand our leadership position for this product category. Despite current market conditions where power outage severity has been well below normal, we believe the penetration opportunity that exists for home standby generators remains significant,” said Aaron Jagdfeld, president and chief executive officer, in a statement. “Our C&I product sales continued to experience good momentum within the oil and gas market, while capital spending with certain telecom customers was lower in the quarter resulting in reduced shipments to this end market. On the acquisition front, we have been active in recent months by closing two transactions which broaden our residential engine powered tool product line and expand our C&I mobile products platform, while also increasing our exposure to the oil & gas market. We remain focused on our “Powering Ahead” strategic plan by proactively executing on a number of growth initiatives to drive a new and higher baseline of demand for our products.”