ENP Newswire -
Release date- 30072014 -
Sales for the second quarter of 2014 increased 8.0%, 6.5% organically, as compared to the second quarter of 2013.
Sales for the first six months of 2014 increased 4.9%, 3.7% organically, as compared to the similar period in 2013. Net income from continuing operations per diluted share (EPS) for the second quarter and six months ended
Adjusted EPS for the second quarter and six months ended
All financial information and period-to-period references are on a continuing operations basis unless otherwise noted. Organic sales growth excludes the impacts of acquisitions, divestitures and foreign exchange from year-over-year comparisons.
Second Quarter Highlights:
Achieved record quarterly sales, driven by organic growth in
Adjusted 2014 second quarter EPS increase of
Adjusted operating margin of 10.3% for the second quarter of 2014 was comparable to the second quarter of 2013; operating margin on a GAAP basis decreased 0.5 percentage points to 9.2%, as compared to the second quarter of 2013.
The Company repurchased approximately 186 thousand shares of Company stock during the second quarter, at a cost of
Free cash flow was
Sales into the
EMEA sales increased
This increase was primarily due to favorable foreign exchange movements associated with the strengthening of the euro versus the U.S. dollar of
Adjusted operating income for the second quarter of 2014 increased by
EMEA adjusted operating margins increased by 3.0 percentage points to 11.7% in the second quarter of 2014 as compared to the second quarter of 2013, as EMEA continued to benefit from its cost control efforts and from increased sales volume.
During the second quarter of 2014, the Company repurchased
Consolidated sales for the first six months of 2014 were
Free cash flow for the first six months of 2014 increased by
Adjusted operating margins were flat with the second quarter of 2013, with margin expansion hindered in the
In this press release we refer to non-GAAP financial measures (including adjusted operating income, adjusted operating margins, adjusted net income, adjusted earnings per share, free cash flow, net debt to capitalization ratio and the cash conversion rate of free cash flow to net income) and provide a reconciliation of those non-GAAP financial measures to the corresponding financial measures contained in our consolidated financial statements prepared in accordance with GAAP.
We believe that these financial measures are appropriate to enhance an overall understanding of our historical financial performance and future prospects. Adjusted operating income, adjusted operating margins, adjusted net income and adjusted earnings per share eliminate certain expenses incurred in the periods presented that relate primarily to our global restructuring programs, deployment costs, asset impairment charges and related tax benefits.
Management then utilizes these adjusted financial measures to assess the run-rate of the Company's continuing operations against those of comparable periods without the distortion of those factors. Free cash flow and the net debt to capitalization ratio which are adjusted to exclude certain cash inflows and outlays, and include only certain balance sheet accounts from the comparable GAAP measures, are an indication of our performance in cash flow generation and also provide an indication of the Company's relative balance sheet leverage to other industrial manufacturing companies.
The cash conversion rate of free cash flow to net income is also a measure of our performance in cash flow generation. These non-GAAP financial measures are among the primary indicators management uses as a basis for evaluating our cash flow generation and our capitalization structure. In addition, free cash flow is used as a criterion to measure and pay certain compensation-based incentives. For these reasons, management believes these non-GAAP financial measures can be useful to investors, potential investors and others.
The Company's non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP.
This Press Release includes 'forward-looking statements' as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views about future events. You should not rely on forward-looking statements because our actual results may differ materially from those predicted as a result of a number of potential risks and uncertainties.
These potential risks and uncertainties include, but are not limited to: the effectiveness of our ongoing restructuring and transformation projects; the current economic and financial condition, which can affect the housing and construction markets where our products are sold, manufactured and marketed; shortages in and pricing of raw materials and supplies; our ability to compete effectively; changes in variable interest rates on our borrowings; failure to expand our markets through acquisitions; failure to successfully develop and introduce new product offerings or enhancements to existing products; failure to manufacture products that meet required performance and safety standards; foreign exchange rate fluctuations; cyclicality of industries where we market our products, such as plumbing and heating wholesalers and home improvement retailers; environmental compliance costs; product liability risks; changes in the status of current litigation, including successful appeal of the approved settlement in Trabakoolas v. Watts and other risks and uncertainties discussed under the heading 'Item 1A.
Risk Factors' and in Note 14 of the Notes to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended
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