Waukesha-based Generac Holdings Inc. today reported third quarter net income of $34 million, or 49 cents per share, down from $36.5 million, or 52 cents per share, in the third quarter of 2014.
Operating income was $67.9 million, down from $70.8 million in the same period a year ago.
The power generation equipment and engine powered product manufacturer reported third quarter revenue of $359.3 million, up from $352.3 million in the third quarter of 2014.
Net sales increased by 2 percent year-over-year, mostly due to contributions from recent acquisitions. Residential product sales were impacted by a decline in shipments of home standby generators due to ‘record low power outage activity,’ while Commercial & Industrial product sales were impacted by lower shipments to the oil and gas markets.
“We are pleased with our overall financial results for the quarter as we saw strong sequential improvement in both sales and margins, which were in line with our expectations,” said Aaron Jagdfeld, president and chief executive officer. “Despite the ongoing low power outage environment, shipments of home standby generators increased significantly relative to the first half of 2015 as field inventory returned to a more normalized level. Contributions from C&I-related acquisitions in recent years had a positive impact on the quarter as we further expanded and diversified our industrial product offering. However, lower energy prices continued to have a negative impact on year-over-year growth for certain mobile products. We were also active on our recently-announced share repurchase program, which we believe is an attractive use of capital for shareholders given our long-term growth opportunities.”
