Federal Signal Corporation Sees 10% Increase in Net Sales

Federal Signal Corporation has recently released its 10-Q report, which provides a detailed overview of the company's financial performance for the quarter. The company operates through two segments: the Environmental Solutions Group and the Safety and Security Systems Group. The Environmental Solutions Group manufactures and supplies a wide range of products, including street sweepers, sewer cleaners, and safe-digging trucks, while the Safety and Security Systems Group provides systems for community alerting and public safety equipment.

In the recently reported quarter, Federal Signal Corporation saw a significant increase in net sales, which amounted to $424.9 million, marking a 10% increase compared to the prior-year quarter. This growth was primarily driven by higher sales volumes and the effects of acquisitions and pricing actions. The Environmental Solutions Group reported a substantial net sales increase of $35.2 million, or 11%, while the Safety and Security Systems Group saw a 6% increase in net sales.

Operating income for the quarter also experienced a notable surge, reaching $54.3 million, a 37% increase compared to the prior-year quarter. This increase was primarily attributed to a $20.2 million improvement in gross profit. The company's consolidated operating margin for the quarter was reported at 12.8%, a significant improvement from the 10.2% margin in the prior-year quarter.

Federal Signal Corporation's total orders for the quarter amounted to $503 million, representing a 6% increase compared to the prior-year quarter. The company's consolidated backlog at the end of the quarter was $1.10 billion, reflecting a substantial increase of $132 million, or 14%, compared to the prior-year quarter.

The Environmental Solutions Group reported a total order of $428 million for the quarter, marking an 8% increase compared to the prior-year quarter. Additionally, the group's backlog increased by $135.6 million, reaching $1.037 billion.

In terms of financial indicators, the company's diluted earnings per share for the quarter stood at $0.84, a significant increase from the $0.45 reported in the prior-year quarter. The effective tax rate for the quarter was a benefit of 1.4%, compared to an expense of 21.0% in the prior-year quarter.

Following these announcements, the company's shares moved -4.9%, and are now trading at a price of $80.98. For the full picture, make sure to review Federal Signal's 10-Q report.

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