Franklin Electric Co., Inc. has recently released its 10-Q report, detailing its financial performance for the second quarter of 2024. The company, headquartered in Fort Wayne, Indiana, is involved in the design, manufacturing, and distribution of water and fuel pumping systems globally. It operates through Water Systems, Fueling Systems, and Distribution segments, offering a range of products for various residential, agricultural, municipal, and industrial applications.
In the second quarter of 2024, Franklin Electric reported net sales of $543.3 million, a 5% decrease from the prior-year period. The sales decline was primarily attributed to lower volumes and the negative impact of foreign currency translation, partially offset by incremental sales from recent acquisitions. The company's consolidated gross profit for the quarter was $199.8 million, marking a 6% increase from the prior-year period.
The breakdown of net sales for the second quarter of 2024 is as follows: Water Systems: $315.6 million, a decrease of $6.1 million Fueling Systems: $73.1 million, a decrease of $7.3 million Distribution: $190.5 million, a decrease of $2.6 million Eliminations/Other: $(35.9) million
For the first six months of 2024, Franklin Electric reported net sales of $1.0 billion, a 5% decrease from the prior-year period. The breakdown of net sales for this period is similar to that of the second quarter, with Water Systems, Fueling Systems, and Distribution segments experiencing declines in sales.
The gross profit margin ratio for the second quarter of 2024 was 36.8%, an increase from 33.1% in the prior-year period. Selling, general, and administrative expenses (SG&A) were $120.6 million, representing 22.2% of net sales, compared to $107.4 million, or 18.9% of net sales, in the second quarter of 2023.
Operating income for the second quarter of 2024 was $79.1 million, a decrease of 2% from the prior-year period. The Water Systems segment reported operating income of $62.3 million, an increase of $11.5 million, while the Fueling Systems and Distribution segments experienced decreases in operating income compared to the prior-year period.
Franklin Electric's net income for the second quarter of 2024 was $59.3 million, a decrease from $60.2 million in the prior-year period. The company's primary sources of liquidity include cash on hand, cash flows from operations, revolving credit agreements, and long-term debt funds available, with a belief that its capital resources and liquidity position are adequate to meet projected needs for the foreseeable future.
Today the company's shares have moved 2.4% to a price of $106.22. For more information, read the company's full 10-Q submission here.
