Fri, Jul 26, 8:15 PM (43 days ago)
Franklin Electric Co., Inc. reported a 5% decrease in net sales for Q2 2024 compared to Q2 2023, totaling $543.3 million. The decline was primarily due to lower volumes and unfavorable foreign currency translations, partially offset by acquisitions. Gross profit rose by 6% to $199.8 million, with a margin improvement to 36.8% from 33.1%. SG&A expenses increased to $120.6 million, driven by higher compensation and marketing costs. Operating income slightly decreased to $79.1 million. Segment-wise, Water Systems saw a 2% sales drop, Fueling Systems declined by 9%, and Distribution decreased by 1%. Water Systems' operating income grew by $11.5 million due to cost management and favorable sales mix, while Fueling and Distribution segments saw declines in operating income. Net income attributable to Franklin Electric was $59.1 million, or $1.26 per diluted share, down from $59.6 million, or $1.27 per diluted share, in Q2 2023. The company maintains a strong liquidity position with $305.5 million available under its credit facility and expects to meet ongoing financial obligations.