Franklin Electric Q1 2024 – Net Sales Down 5%

Franklin Electric Co., Inc. has reported its first quarter financial results for fiscal year 2024, with consolidated net sales of $460.9 million, indicating a 5% decrease from the prior year. Notably, distribution net sales increased by 3%, while water systems and fueling systems net sales decreased by 7% and 15% respectively.

The company's operating income for the first quarter of 2024 was $47.9 million, with an operating margin of 10.4%. However, this represents a decrease from the operating income of $52.6 million reported for the first quarter of 2023. The GAAP fully diluted earnings per share (EPS) for the first quarter of 2024 was $0.70, down from $0.79 in the first quarter of 2023.

The water systems segment reported net sales of $286.6 million, a 7% decrease compared to the record first quarter sales of 2023. The distribution segment saw net sales of $147.0 million, representing a 3% increase from the first quarter of 2023. On the other hand, fueling systems net sales were $62.1 million, a notable decrease of 15% compared to the first quarter of 2023.

Looking ahead, the company is maintaining its guidance for full year 2024 sales to be in the range of $2.10 billion to $2.17 billion and full year 2024 EPS to be in the range of $4.22 to $4.40.

The company's chairperson and chief executive officer, Gregg Sengstack, noted that the first quarter started slower than expected but improved as the quarter progressed, driven by seasonal demand. Sengstack highlighted that while results were slightly below expectations due to unfavorable weather patterns and commodity price headwinds, underlying demand in core markets remains healthy. He also pointed out that strong execution by global teams drove improved margins on lower sales in water systems and fueling systems segments.

Investors and stakeholders interested in learning more about these results and the company's future developments have the opportunity to join the earnings conference call, which will be available via a live webcast and will include a question-and-answer portion as well.

Following these announcements, the company's shares moved -4.0%, and are now trading at a price of $99.08. For the full picture, make sure to review Franklin Electric's 8-K report.

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