Fort Wayne-based Franklin Electric Co. Inc. (Nasdaq: FELE) is reporting first quarter net income of $9.1 million, down from $21.2 million during the same period last year. The company says the results are due, in part, to lower than expected demand.
Franklin Electric says net sales for the first quarter totaled 290.7 million, compared to $295.6 million in the first quarter of 2018. Chairman and Chief Executive Officer Gregg Sengstack says the sales results were "meaningfully below" the company’s expectations and the primary driver of the lower earnings.
"The key factors that contributed to the lower than expected net sales included adverse winter weather conditions in North America that hurt all our operating segments, and weak international end markets primarily in Europe, the Middle East and Central America," said Sengstack. "Our operating income before restructuring expenses declined by about $9.5 million from the first quarter 2018 due in large part to the lower sales volume and adverse sales mix, resulting in lost leverage on our fixed cost base."
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