Federal Signal Corporation Announces 2011 Third Quarter Results
Federal Signal Corporation, a leader in environmental, safety and transportation solutions, announced today earnings per share from continuing operations of $0.03 for the third quarter and income from continuing operations of $2.0 million on net sales of $194.2 million.
For the same period of 2010, the Company reported earnings per share from continuing operations of $0.04 and income from continuing operations of $2.2 million on net sales of $179.6 million. Despite the increase in operating income, the year over year third quarter income decline was due to higher interest expense and a decrease in other income (expense), primarily due to foreign currency impacts.
Year to date, the Company reported earnings per share of $0.04 from continuing operations on net sales of $572.3 million compared to a loss per share from continuing operations for the same period of 2010 of $(0.04) on net sales of $539.8 million. The year over year favorable increase is primarily related to an increase in net sales of $32.5 million and the absence of restructuring charges and acquisition and integration costs of $4.0 million and $3.8 million, respectively, which were incurred in 2010, partially offset by higher interest expense in 2011.
The Company recorded net income of $1.7 million in the third quarter of 2011 compared to net income of $1.2 million, which included a net loss from discontinued operations of $(1.0) million in the same prior year period. Year to date, net income is $2.4 million compared to a net loss of $(6.5) million in 2010, which included a net loss from discontinued operations of $(4.2) million in the same prior year period.
Dennis J. Martin, President and Chief Executive Officer, stated, "We continued to make progress and improve our operating performance in the third quarter. Orders, net sales and operating income all increased versus last year, and we have improved our working capital metrics. Total orders increased 26% versus last year, and this represented the third consecutive quarter in which we recorded orders of over $200 million."
Mr. Martin continued, "We are particularly encouraged by the order trends in our longer lead-time business groups, Environmental Solutions and Fire Rescue. Orders for ESG were up 20% versus last year, and Bronto's third quarter orders nearly doubled versus Q3 2010. The combined backlog for these two business groups now stands at $226 million, versus $140 million at the end of last year. With the growing levels of orders and backlog, we had expected a higher level of shipments of Bronto units during the quarter than we achieved. Several units that had been expected to ship in the third quarter have been shifted to the fourth quarter. This negatively impacted our expected earnings per share by about $0.03 for the quarter. We continue to ramp up our production capacity to meet the higher levels of demand and improve production efficiencies in these longer lead-time businesses."
Year to date, the Company reported earnings per share of $0.04 from continuing operations on net sales of $572.3 million compared to a loss per share from continuing operations for the same period of 2010 of $(0.04) on net sales of $539.8 million. The year over year favorable increase is primarily related to an increase in net sales of $32.5 million and the absence of restructuring charges and acquisition and integration costs of $4.0 million and $3.8 million, respectively, which were incurred in 2010, partially offset by higher interest expense in 2011.
The Company recorded net income of $1.7 million in the third quarter of 2011 compared to net income of $1.2 million, which included a net loss from discontinued operations of $(1.0) million in the same prior year period. Year to date, net income is $2.4 million compared to a net loss of $(6.5) million in 2010, which included a net loss from discontinued operations of $(4.2) million in the same prior year period.
Dennis J. Martin, President and Chief Executive Officer, stated, "We continued to make progress and improve our operating performance in the third quarter. Orders, net sales and operating income all increased versus last year, and we have improved our working capital metrics. Total orders increased 26% versus last year, and this represented the third consecutive quarter in which we recorded orders of over $200 million."
Mr. Martin continued, "We are particularly encouraged by the order trends in our longer lead-time business groups, Environmental Solutions and Fire Rescue. Orders for ESG were up 20% versus last year, and Bronto's third quarter orders nearly doubled versus Q3 2010. The combined backlog for these two business groups now stands at $226 million, versus $140 million at the end of last year. With the growing levels of orders and backlog, we had expected a higher level of shipments of Bronto units during the quarter than we achieved. Several units that had been expected to ship in the third quarter have been shifted to the fourth quarter. This negatively impacted our expected earnings per share by about $0.03 for the quarter. We continue to ramp up our production capacity to meet the higher levels of demand and improve production efficiencies in these longer lead-time businesses."
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