Franklin Electric Reports Record Third Quarter 2022 Results
Image source: Franklin Electric Co. Inc.
Third quarter 2022 sales were $551.7 million, compared to third quarter 2021 sales of $459.0 million. Third quarter 2022 operating income was $80.0 million, compared to third quarter operating income in 2021 of $56.6 million. Third quarter 2022 GAAP fully diluted earnings per share was $1.24, versus GAAP fully diluted EPS in the third quarter 2021 of $0.98.
“We are pleased with the strong performance of our global business during the quarter and particularly the resilience demonstrated as we delivered our ninth straight quarter of record results. We continue to see strong demand in our core markets as evidenced by our double-digit top line growth on a consolidated basis and all three operating segments,” commented Gregg Sengstack, Franklin Electric’s Chairperson and Chief Executive Officer. “Furthermore, our open order backlog remains at an elevated level of $250 million indicating on-going strong demand for the remainder of this year and into 2023.”
“Similar to the second quarter, the operating environment remained choppy. Supply issues improved, but at a slower pace than we anticipated. In this strong inflationary environment, our global team performed exceptionally well with focused cost management, particularly in SG&A expense, where we continue to realize increased operating leverage. This strong performance more than offset the higher than anticipated headwind to earnings from foreign translation and exchange losses in the quarter. As a result, we are revising our guidance for full-year 2022 net sales to between $2.0 billion and $2.1 billion with our 2022 full-year earnings per share excluding restructuring to the range of $4.08 and $4.18, reflecting an increase in our earnings per share guidance midpoint to $4.13.” concluded Mr. Sengstack.
Segment Summaries
Water Systems sales, a new third quarter record, were $293.1 million in the third quarter 2022, an increase of $32.4 million or 12 percent versus the third quarter 2021. Water Systems sales, excluding acquisitions and the impact of foreign currency translation, were up about 19 percent compared to the third quarter 2021. Sales increases were led by pricing actions and strong end market demand across all major product lines in groundwater pumping, surface pumping and dewatering equipment. Water Systems operating income in the third quarter was $45.5 million, a new third quarter record, driven by higher sales. Third quarter 2021 Water Systems operating income was $36.8 million.
Distribution sales, a new record for any quarter, were $193.2 million in the third quarter 2022. The Distribution segment organic sales increased 22 percent compared to the third quarter of 2021. Revenue growth was driven by solid demand primarily in the U.S. groundwater market due to strong price realization in addition to the growth from acquisition. The Distribution segment operating income, a new third quarter record, was $19.0 million in the third quarter of 2022 compared to third quarter 2021 operating income of $12.3 million.
Fueling Systems sales, a new record for any quarter, were $90.2 million in the third quarter 2022, an increase of $9.2 million versus the third quarter 2021. Fueling Systems sales, excluding the impact of foreign currency translation, were up about 13 percent compared to the third quarter 2021. Fueling Systems sales increases in the U.S. and Canada were led by stronger demand for Fuel Management Systems compared to the third quarter 2021. Outside the U.S. and Canada, Fueling Systems revenues were up, with sales growth in India and EMEA, offsetting lower sales in China. Fueling Systems operating income, a new record for any quarter, was $28.6 million in the third quarter of 2022, compared to $23.9 million in the third quarter of 2021.
Source: Franklin Electric Co., Inc.
