Franklin Electric Co. Inc. (FELE, Financial) filed Quarterly Report for the period ended 2009-07-04.
Franklin Electric Company is the world\'s largest manufacturer of submersible electric motors and a leading producer of engineered specialty electric motor products and electronic controls used by original equipment manufacturers around the world in a wide variety of residential industrial and municipal applications. The principal application for Franklin\'s submersible electric motors is for water well pumping systems. Franklin Electric Co. Inc. has a market cap of $770.1 million; its shares were traded at around $33.39 with a P/E ratio of 22.2 and P/S ratio of 1. The dividend yield of Franklin Electric Co. Inc. stocks is 1.5%. Franklin Electric Co. Inc. had an annual average earning growth of 6.8% over the past 10 years. GuruFocus rated Franklin Electric Co. Inc. the business predictability rank of 3-star.
Other Income or Expense for the second quarter of 2009 and 2008 was $0.3 million income and $0.1 million expense, respectively. In the prior year, the Company reached an agreement in a trademark licensing dispute and recorded a pre-tax expense of $0.9 million to reflect the settlement payment. In other income for the second quarter of 2009 and 2008 was interest income of $0.3 million and $0.5 million, respectively, primarily derived from the investment of cash balances in short-term U.S. treasury and agency securities.
Net income for the second quarter of 2009 was $6.0 million compared to 2008 second quarter net income of $15.4 million. Net income attributable to Franklin Electric Co., Inc. for the second quarter of 2009 was $5.8 million, or $0.25 per diluted share, compared to 2008 second quarter net income attributable to Franklin Electric Co., Inc. of $15.3 million or $0.66 per diluted share.
Net sales for the first half of 2009 were $315.1 million, a decrease of $62.6 million or 17 percent compared to sales in the same period of 2008 of $377.7 million. A factor causing the Company s earnings decline during the first half of 2009 was the sales volume reduction that was experienced as a result of the general economic recession. The ongoing slump in housing combined with customers desire to reduce inventories contributed to soft end market demand and fewer shipments for the Company s products in the first half. Sales declined by 14 percent or $52.6 million in the first half of 2009 due to volume, exclusive of foreign currency translation. First half 2009 sales were lower by $22.3 million or 6 percent versus the first half sales of 2008 due to foreign currency translations as a result of a stronger U.S. dollar. Additionally, incremental sales related to acquisitions for 2009 were $12.3 million or 3 percent of sales.
Net income for the first half of 2009 was $10.1 million compared to the same period of 2008 net income of $23.7 million. Net income attributable to Franklin Electric Co., Inc. for the first half of 2009 was $9.7 million, or $0.42 per diluted share, compared to 2008 first half net income attributable to Franklin Electric Co., Inc. of $23.4 million or $1.01 per diluted share.
Net cash used by financing activities of $27.7 million in the six months ended July 4, 2009 was primarily related to payments on short term debt. Also included was the payment of $5.7 million in dividends to its common shareholders and $0.4 million to non-controlling interests. Net cash provided by financing activities of $46.1 million in the six months ended June 28, 2008 was primarily related to proceeds from new debt incurred, net of repayments to date, the repurchase of approximately 235,000 shares of its common stock for $7.8 million, and the payment of $5.6 million in dividends to its shareholders.
Read the The complete ReportFELE is in the portfolios of Richard Aster Jr of Meridian Fund, Richard Aster Jr of Meridian Fund, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc.
Franklin Electric Company is the world\'s largest manufacturer of submersible electric motors and a leading producer of engineered specialty electric motor products and electronic controls used by original equipment manufacturers around the world in a wide variety of residential industrial and municipal applications. The principal application for Franklin\'s submersible electric motors is for water well pumping systems. Franklin Electric Co. Inc. has a market cap of $770.1 million; its shares were traded at around $33.39 with a P/E ratio of 22.2 and P/S ratio of 1. The dividend yield of Franklin Electric Co. Inc. stocks is 1.5%. Franklin Electric Co. Inc. had an annual average earning growth of 6.8% over the past 10 years. GuruFocus rated Franklin Electric Co. Inc. the business predictability rank of 3-star.
Highlight of Business Operations:
Second quarter sales were $165.3 million, down $36.4 million or 18 percent compared to $201.7 million in 2008. Sales from businesses acquired during the last 12 months were $6.3 million or 3 percent. Sales revenue decreased by $9.0 million or 4 percent in the quarter due to foreign currency translation. Overall sales declined organically, exclusive of acquisitions and foreign currency translations, $33.7 million or 17 percent for the second quarter.Other Income or Expense for the second quarter of 2009 and 2008 was $0.3 million income and $0.1 million expense, respectively. In the prior year, the Company reached an agreement in a trademark licensing dispute and recorded a pre-tax expense of $0.9 million to reflect the settlement payment. In other income for the second quarter of 2009 and 2008 was interest income of $0.3 million and $0.5 million, respectively, primarily derived from the investment of cash balances in short-term U.S. treasury and agency securities.
Net income for the second quarter of 2009 was $6.0 million compared to 2008 second quarter net income of $15.4 million. Net income attributable to Franklin Electric Co., Inc. for the second quarter of 2009 was $5.8 million, or $0.25 per diluted share, compared to 2008 second quarter net income attributable to Franklin Electric Co., Inc. of $15.3 million or $0.66 per diluted share.
Net sales for the first half of 2009 were $315.1 million, a decrease of $62.6 million or 17 percent compared to sales in the same period of 2008 of $377.7 million. A factor causing the Company s earnings decline during the first half of 2009 was the sales volume reduction that was experienced as a result of the general economic recession. The ongoing slump in housing combined with customers desire to reduce inventories contributed to soft end market demand and fewer shipments for the Company s products in the first half. Sales declined by 14 percent or $52.6 million in the first half of 2009 due to volume, exclusive of foreign currency translation. First half 2009 sales were lower by $22.3 million or 6 percent versus the first half sales of 2008 due to foreign currency translations as a result of a stronger U.S. dollar. Additionally, incremental sales related to acquisitions for 2009 were $12.3 million or 3 percent of sales.
Net income for the first half of 2009 was $10.1 million compared to the same period of 2008 net income of $23.7 million. Net income attributable to Franklin Electric Co., Inc. for the first half of 2009 was $9.7 million, or $0.42 per diluted share, compared to 2008 first half net income attributable to Franklin Electric Co., Inc. of $23.4 million or $1.01 per diluted share.
Net cash used by financing activities of $27.7 million in the six months ended July 4, 2009 was primarily related to payments on short term debt. Also included was the payment of $5.7 million in dividends to its common shareholders and $0.4 million to non-controlling interests. Net cash provided by financing activities of $46.1 million in the six months ended June 28, 2008 was primarily related to proceeds from new debt incurred, net of repayments to date, the repurchase of approximately 235,000 shares of its common stock for $7.8 million, and the payment of $5.6 million in dividends to its shareholders.
Read the The complete ReportFELE is in the portfolios of Richard Aster Jr of Meridian Fund, Richard Aster Jr of Meridian Fund, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc.
