Franklin Electric Co., Inc. (FELE) has reported a 16.89 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $15.73 million, or $0.33 a share in the quarter, compared with $13.46 million, or $0.28 a share for the same period last year.
Revenue during the quarter went up marginally by 0.83 percent to $220.25 million from $218.43 million in the previous year period. Gross margin for the quarter expanded 44 basis points over the previous year period to 34.42 percent. Total expenses were 91.60 percent of quarterly revenues, up from 90.35 percent for the same period last year. That has resulted in a contraction of 124 basis points in operating margin to 8.40 percent.
Operating income for the quarter was $18.51 million, compared with $21.07 million in the previous year period.
Gregg Sengstack, Franklin Electric’s Chairman and Chief Executive Officer, commented: "We are pleased to report increased sales and earnings for the first quarter. Our Fueling Systems segment achieved record first quarter sales and earnings and posted organic sales growth of 9 percent and our Water business outside the U.S. and Canada grew organically as well, with particularly strong results in Latin America. Gross profit and gross profit margins both improved over the first quarter 2016. Despite these improvements, our operating income declined in the quarter due to higher marketing and selling costs. During the first quarter, we recognized discrete tax benefits that more than offset the operating income decline and allowed us to achieve an 18 percent increase in EPS."
For financial year 2017, the company projects diluted earnings per share to be in the range of $1.77 to $1.87 on adjusted basis.
Operating cash flow remains negative Franklin Electric Co., Inc. has spent $24.57 million cash to meet operating activities during the quarter as against cash outgo of $0.44 million in the last year period. The company has spent $4.88 million cash to meet investing activities during the quarter as against cash outgo of $10.97 million in the last year period. It has incurred net capital expenditure of $4.87 million on net basis during the quarter, down 55.56 percent or $6.09 million from year ago period.
The company has spent $5.31 million cash to carry out financing activities during the quarter as against cash inflow of $3.57 million in the last year period.
Cash and cash equivalents stood at stood at $70.65 million as at Mar. 31, 2017.
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