Generac sales rise in Q4
California public utility shut-offs help drive demand for standby and portable power.
Generac, the generator and power supply manufacturer, reported net sales increased 4.9% to $590.9 million for fourth quarter of 2019 compared to sales of $563.4 million in the prior-year fourth quarter.
Core sales for the quarter, which excludes both the impact of acquisitions and foreign currency, increased by 4%.
Residential product sales increased 9.7% to $322.5 million for the quarter compared to $293.9 million last year, with core sales growth of approximately 7%. Commercial and industrial product sales decreased 2.7% to $217.1 million as compared to $223.2 million in the prior year, with core sales also declining approximately 3%.
Profits slipped 9% for the fourth quarter as Generac reported a net income of $70 million compared to a net income of $77 million for the same period last year.
For the full year, net sales increased 8.9% to $2.20 billion compared to $2.02 billion in 2018 with core sales growth at nearly 8%.
Residential product sales increased 9.7% to $1.14 billion from $1.04 billion last year, with core sales growth of approximately 9%. Commercial and industrial product sales increased 6.3% to $871.6 million compared to $820.3 million in the prior year, with core sales also increasing approximately 6%.
The company’s net income for the year increased 5.7% to $252.0 million compared to $238.3 million for 2018.
The bottom line: Generac reports strong Q4 sales, particularly in residential products, but profits
What the CEO said: “The fourth quarter was a great finish to a very strong 2019 with record performance for both the quarter and the full-year for net sales, adjusted EBITDA and free cash flow,” said Aaron Jagdfeld, president and CEO of Generac. “Home standby demand was again robust during the quarter driven by California as public utility shut-offs drove a dramatic increase in interest for these products. We also made the first shipments of our new PWRcell energy storage system during the quarter, and the outlook for our clean energy products continues to exceed our expectations.
Company info: The full fourth quarter 2019 and year-end report from Generac is available here.
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