nVent Reports Second Quarter 2019 Financial Results

Second quarter sales of $540 million were down 1 percent relative to the second quarter 2018 and grew 1 percent organically, which excludes the impact from currency fluctuations. Second quarter 2019 earnings per diluted share (“EPS”) were $0.35, while on an adjusted basis, the company had EPS of $0.44. Segment income, adjusted net income, free cash flow and adjusted EPS are described in the attached schedules.

Second quarter 2019 operating income was $87 million, up 33 percent from $65 million in the second quarter of 2018. On an adjusted basis, segment income was $105 million, down 2 percent compared to the second quarter of 2018.

Net cash provided by operating activities was $58 million in the first half of 2019 and total free cash flow was $46 million. The company continues to target full-year free cash flow of approximately 100 percent of adjusted net income.

"We delivered another quarter of solid sales growth in both Enclosures and Electrical & Fastening Solutions. Our Thermal Management business was challenged in Commercial and longer cycle Energy. We continue to make progress with our One nVent strategy improving our new product vitality, strengthening our digital capabilities and growing in focused verticals," said Beth Wozniak, nVent s chief executive officer. "We are excited about the pending Eldon acquisition which is a great fit with our Enclosures portfolio and will accelerate our global growth."

Guidance for full-year and third quarter 2019
The company now estimates reported sales growth for the full-year 2019 of down 2 percent to up 1 percent, which represents flat to up 2 percent organic growth versus the prior year. The company expects full-year 2019 EPS of $1.45 to $1.53 on a GAAP basis and adjusted EPS of $1.76 to $1.84.

The company estimates reported sales for the third quarter of 2019 to be down 2 percent to up 1 percent, which represents down 1 percent to up 2 percent on an organic basis. The company estimates third quarter 2019 EPS on a GAAP basis of $0.40 to $0.44 and adjusted EPS of $0.47 to $0.51.

Full-year EPS guidance includes the estimated impact of the proposed U.S. tax regulations announced in December 2018.

Guidance excludes any impact from the pending acquisition of Eldon.