Sales drop during second quarter for Generac

Freeman Staff

Aug. 7, 2015

TOWN OF GENESEE - Generac Holdings Inc. announced its financial results for the second quarter Thursday, which showed a decline in net sales, as well as a decline in residential and commercial and industrial product sales.

The Town of Genesee-based designer and manufacturer of power generation equipment and other engine-powered products reported net sales were $288.4 million during the second quarter of 2015 as compared to $362.6 million for the second quarter of 2014. Residential product sales were $133.5 million during the second quarter as compared to $179.6 million for the same period last year, primarily due to lower demand of home standby generators as a result of a power outage severity environment that continues to remain challenging, according to Generac.

Commercial & Industrial product sales were $134.6 million during the second quarter as compared to $163.5 million for the second quarter of 2014, primarily due to a decline in shipments to oil & gas markets, and to a lesser extent, reduced shipments to telecom national account customers, according to the report.

Net income during the second quarter of 2015 was $14.8 million, or $0.21 per share, as compared to $54 million, or $0.77 per share, for the same period of 2014.

"The record-low outage environment coupled with excess field inventory levels exiting the first quarter dampened demand for home standby generators more than expected during the second quarter," said Aaron Jagdfeld, president and chief executive officer, in a statement.  "In addition, the rapid decline in oil and gas related investment together with ongoing softness in capital spending in the telecom sector continued to have a negative impact on year-over-year growth for our C&I products during the quarter.

"On the acquisition front, the Country Home Products transaction that we announced earlier this week broadens our residential engine-powered tools platform, while also further diversifying our business."

www.generac.com