Franklin Electric Co. Inc. (FELE, Financial) filed Quarterly Report for the period ended 2009-10-03.
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 $637.2 million; its shares were traded at around $27.59 with a P/E ratio of 23.7 and P/S ratio of 0.8. The dividend yield of Franklin Electric Co. Inc. stocks is 1.8%. 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.
Net income for the third quarter of 2009 was $8.8 million compared to 2008 third quarter net income of $17.4 million. Net income attributable to Franklin Electric Co., Inc. for the third quarter of 2009 was $8.6 million, or $0.37 per diluted share, compared to 2008 third quarter net income attributable to Franklin Electric Co., Inc. of $17.3 million or $0.74 per diluted share.
Net sales for the first nine months of 2009 were $481.1 million, a decrease of $112.4 million or 19 percent compared to sales of $593.5 million in the same period of 2008. The primary factor causing the Company s earnings decline during the first nine months of 2009 was the sales volume reduction that was a result of the continuing recession and reduced sales of the Company s vapor recovery products in the State of California. 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. Sales declined by 17 percent or $103.5 million in the first nine months of 2009 due to volume, exclusive of acquisitions and foreign currency translation. The first nine months of 2009 sales were lower by $27.8 million or 5 percent versus the sales in the first nine months 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 $18.9 million or 3 percent of sales.
Other Income or Expense for the first nine months of 2009 and 2008 was $1.0 million and $1.2 million income, respectively. Included in other income for the first nine months of 2009 and 2008 was interest income of $0.8 million and $1.6 million, respectively, primarily derived from the investment of cash balances in short-term U.S. treasury and agency securities. Also included in other income in the first nine months of 2009 and 2008 was income from equity investments of $0.1 million and $0.5 million. Offsetting the 2008 income was a pre-tax expense of $0.9 million recorded in the second quarter to settle a trademark licensing dispute.
Net income for the first nine months of 2009 was $18.9 million compared to net income of $41.1 million in the same nine months of 2008. Net income attributable to Franklin Electric Co., Inc. for the first nine months of 2009 was $18.3 million, or $0.79 per diluted share, compared to 2008 first nine months net income attributable to Franklin Electric Co., Inc. of $40.7 million or $1.75 per diluted share.
Net cash used by financing activities of $44.4 million in the nine months ended October 3, 2009 was primarily related to payments on short-term debt. Also included was the payment of $8.6 million in dividends to the Company s common shareholders and $0.4 million to non-controlling interests. Net cash provided by financing activities of $26.5 million in the nine months ended September 27, 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 $8.5 million in dividends to its shareholders.
Read the The complete ReportFELE is in the portfolios of 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 $637.2 million; its shares were traded at around $27.59 with a P/E ratio of 23.7 and P/S ratio of 0.8. The dividend yield of Franklin Electric Co. Inc. stocks is 1.8%. 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:
Third quarter sales were $166.0 million, down $49.8 million or 23 percent compared to $215.8 million in 2008. Sales from businesses acquired during the last 12 months were $6.5 million or 3 percent. Sales revenue decreased by $5.5 million or 2 percent in the quarter due to foreign currency translation. Overall sales declined organically, exclusive of acquisitions and foreign currency translation, $50.8 million or 24 percent for the third quarter.Net income for the third quarter of 2009 was $8.8 million compared to 2008 third quarter net income of $17.4 million. Net income attributable to Franklin Electric Co., Inc. for the third quarter of 2009 was $8.6 million, or $0.37 per diluted share, compared to 2008 third quarter net income attributable to Franklin Electric Co., Inc. of $17.3 million or $0.74 per diluted share.
Net sales for the first nine months of 2009 were $481.1 million, a decrease of $112.4 million or 19 percent compared to sales of $593.5 million in the same period of 2008. The primary factor causing the Company s earnings decline during the first nine months of 2009 was the sales volume reduction that was a result of the continuing recession and reduced sales of the Company s vapor recovery products in the State of California. 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. Sales declined by 17 percent or $103.5 million in the first nine months of 2009 due to volume, exclusive of acquisitions and foreign currency translation. The first nine months of 2009 sales were lower by $27.8 million or 5 percent versus the sales in the first nine months 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 $18.9 million or 3 percent of sales.
Other Income or Expense for the first nine months of 2009 and 2008 was $1.0 million and $1.2 million income, respectively. Included in other income for the first nine months of 2009 and 2008 was interest income of $0.8 million and $1.6 million, respectively, primarily derived from the investment of cash balances in short-term U.S. treasury and agency securities. Also included in other income in the first nine months of 2009 and 2008 was income from equity investments of $0.1 million and $0.5 million. Offsetting the 2008 income was a pre-tax expense of $0.9 million recorded in the second quarter to settle a trademark licensing dispute.
Net income for the first nine months of 2009 was $18.9 million compared to net income of $41.1 million in the same nine months of 2008. Net income attributable to Franklin Electric Co., Inc. for the first nine months of 2009 was $18.3 million, or $0.79 per diluted share, compared to 2008 first nine months net income attributable to Franklin Electric Co., Inc. of $40.7 million or $1.75 per diluted share.
Net cash used by financing activities of $44.4 million in the nine months ended October 3, 2009 was primarily related to payments on short-term debt. Also included was the payment of $8.6 million in dividends to the Company s common shareholders and $0.4 million to non-controlling interests. Net cash provided by financing activities of $26.5 million in the nine months ended September 27, 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 $8.5 million in dividends to its shareholders.
Read the The complete ReportFELE is in the portfolios of Richard Aster Jr of Meridian Fund, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc.
