Record Sales for Pump and Compressor Business
Thomas Industries Inc. reported financial results for the first quarter ending March 31, 2005. Net sales were $109,969,000, as compared to $109,518,000 a year ago. This represents a record for any quarter for the pump and compressor business.
The January 10, 2005, acquisition of the Ruey Chaang side channel blower business favorably impacted sales for the quarter by approximately $1,600,000.
Operating income for the quarter was $8,982,000. Operating income for the same period in 2004 was $16,805,000 and includes $7,422,000 of equity earnings from the Company's joint venture interest in Genlyte Thomas Group LLC, which was sold in July 2004. Selling, general and administrative expenses for the quarter include $1,550,000 for legal and professional fees related to the proposed Gardner Denver transaction, and a favorable adjustment of $725,000 due to a change in the Kentucky license tax regulations. Net income for the quarter was $7,432,000, or $.41 per share, versus $10,650,000, or $.60 per share a year ago, which included the equity earnings from Genlyte Thomas Group LLC.
Operating income for the pump and compressor business, excluding $3,219,000 of Corporate expense was $12,201,000 for the 2005 first quarter, which is a record for any quarter. The operating income includes patent litigation fees of $587,000 and start up costs for the Company's new China facility totaling $262,000. The operating income for the 2004 first quarter included $843,000 of costs relating to the shutdown of a plant in Wuppertal, Germany.
Despite commodity cost increases, gross profit margins for the first quarter of 2005 improved one percent from 2004, attributable to price increases, plant consolidations and a continuing internal cost reduction program.
In commenting on the pump and compressor business, Timothy C. Brown, Chairman, President and C.E.O., stated, "Although the quarter started out weaker in January and February than last year, our March ended up stronger than in 2004. Sales to our largest market, medical, were down eight percent for the quarter from last year, primarily due to the anticipated decline in shipments of compressors for oxygen concentrators. We expect this market to rebound some in the second quarter. Excluding the oxygen concentrator market, we experienced increases in sales for other medical applications. Other strong markets for the quarter included food & beverage, industrial and environmental."
Brown noted that the proposed merger with Gardner Denver Inc., which was announced on March 9, 2005, is proceeding as expected. The filings for the necessary regulatory approvals have been made and are pending. In addition, Thomas shareholders will be asked to vote upon this proposal at a Special Meeting of Shareholders. A proxy statement with detailed information about the proposed merger and other details concerning the Special Meeting will be mailed to all shareholders at least 30 days in advance of this meeting.
Source: Thomas Industries, Inc.