The following is a summary of the Franklin Electric Co., Inc. (FELE) Q1 2024 Earnings Call Transcript:
Financial Performance:
Franklin's Q1 2024 revenue reduced by 5% to $24 million, lower than Q1 2023. However, gross margin improved due to product mix and cost control. The diluted EPS came out at $0.70 compared to earlier $0.79.
The Water Systems and Fueling Systems sales and operating income declined 7% and 15%, and 4% and 10% respectively, compared to the previous year.
Sales in their Distribution business increased by 3%, mainly due to their 2023 acquisition. This helped them to normalise inventory levels and improve cash flow by $10 million.
Despite a decline in their sales, they are sticking to their 2024 sales and EPS guidance of $2.1 -$2.17 billion and $4.22 -$4.40 respectively.
Business Progress:
Franklin continues to focus on working capital, resulting in normalized inventory levels.
They plan to explore growth through acquisitions, especially focusing on the manufacturing sector and companies with larger pumps to solidify their leadership in residential and agricultural sectors.
They experienced a decline in their U.S and Canadian markets by 50% while witnessing a 10% growth outside these markets. This resulted in a global decline of about 40%.
They expect a mid-teen decline in 2024 following their global record sales of $200 million in 2023 but are hopeful for a seasonal pickup in their business in Q2.
More details: Franklin Electric IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.