Federal Signal Corporation Announces Second Quarter Results
Q2 Orders Increased 23% vs. 2009 Driven by Industrial Markets and FSTech businesses
Federal Signal Corporation (NYSE: FSS), a leader in environmental, safety and transportation solutions, announced today second quarter reported earnings per share from continuing operations was $0.02 on income of $1.4 million and net sales of $198.7 million. Excluding restructuring charges, adjusted earnings per share from continuing operations would be $0.06 for the second quarter. Adjusted earnings per share from continuing operations excludes $3.7 million of pre-tax restructuring related charges. For the same period of 2009, the Company reported earnings per share from continuing operations of $0.09 on income of $4.4 million and net sales of $198.5 million. The year over year second quarter income decline was primarily due to the restructuring charges as well as $1.1 million in acquisition and integration costs related to the Sirit and VESystems acquisitions. The Companys earnings per share calculation was also impacted by an increased number of outstanding shares related to the equity offering completed in May 2010.
Year to date, the Company reported a loss per share of $(0.03) from continuing operations on net sales of $365.2 million as compared to earnings per share from continuing operations in 2009 of $0.10. The year over year reduction is primarily related to lower first quarter net sales, restructuring charges of $4.0 million, and $3.7 million in acquisition and integration costs. Excluding restructuring charges year to date 2010, adjusted earnings per share from continuing operations would be $0.02.
William H. Osborne, president and chief executive officer, stated, We continued to see positive signs across many of our businesses in the quarter, but our near-term expectations have been tempered by economic conditions in Europe. We saw a 23% increase in total company orders versus last year, including a 16% increase in orders for our existing businesses. We achieved order growth rates in excess of 15% in many of our key businesses: PIPS Automated License Plate Recognition (ALPR) cameras, parking, industrial safety and security, Vactor sewer cleaners and Jetstream waterblasters. However, as the European debt crisis unfolded, we saw a significant drop in the order rate for some of our European-based businesses. As an example, Q2 orders for our Bronto Skylift business were 37% below Q1 orders.
Mr. Osborne continued, As we have previously discussed, this quarter we established a new operating group -- Federal Signal Technologies, or FSTech, which consists of our PIPS ALPR business, our parking business and our three recent acquisitions: Sirit, VESystems and Diamond Consulting Services. Due to the change in our business group structure, as well as some other changes across the company, we recognized a $3.7 million restructuring charge in the quarter. The expected annualized savings from the restructuring actions are well in excess of the second quarter charge, and will position the company for improved profitability as we move forward.
The Company recorded a net loss of $(0.4) million in the second quarter of 2010 compared to a net loss of $(4.9) million in the prior year period. Year to date, the net loss was $(4.0) million and $(3.9) million for 2010 and 2009, respectively. The losses in both 2009 and 2010 are primarily related to the discontinuation of Ravo which was sold in 2009, and also the 2010 second quarter discontinuation of Riverchase, a business in the Safety and Security Systems group.
Year to date, the Company reported a loss per share of $(0.03) from continuing operations on net sales of $365.2 million as compared to earnings per share from continuing operations in 2009 of $0.10. The year over year reduction is primarily related to lower first quarter net sales, restructuring charges of $4.0 million, and $3.7 million in acquisition and integration costs. Excluding restructuring charges year to date 2010, adjusted earnings per share from continuing operations would be $0.02.
William H. Osborne, president and chief executive officer, stated, We continued to see positive signs across many of our businesses in the quarter, but our near-term expectations have been tempered by economic conditions in Europe. We saw a 23% increase in total company orders versus last year, including a 16% increase in orders for our existing businesses. We achieved order growth rates in excess of 15% in many of our key businesses: PIPS Automated License Plate Recognition (ALPR) cameras, parking, industrial safety and security, Vactor sewer cleaners and Jetstream waterblasters. However, as the European debt crisis unfolded, we saw a significant drop in the order rate for some of our European-based businesses. As an example, Q2 orders for our Bronto Skylift business were 37% below Q1 orders.
Mr. Osborne continued, As we have previously discussed, this quarter we established a new operating group -- Federal Signal Technologies, or FSTech, which consists of our PIPS ALPR business, our parking business and our three recent acquisitions: Sirit, VESystems and Diamond Consulting Services. Due to the change in our business group structure, as well as some other changes across the company, we recognized a $3.7 million restructuring charge in the quarter. The expected annualized savings from the restructuring actions are well in excess of the second quarter charge, and will position the company for improved profitability as we move forward.
The Company recorded a net loss of $(0.4) million in the second quarter of 2010 compared to a net loss of $(4.9) million in the prior year period. Year to date, the net loss was $(4.0) million and $(3.9) million for 2010 and 2009, respectively. The losses in both 2009 and 2010 are primarily related to the discontinuation of Ravo which was sold in 2009, and also the 2010 second quarter discontinuation of Riverchase, a business in the Safety and Security Systems group.
About Federal Signal
Federal Signal Corporation (NYSE: FSS) enhances the safety, security and well-being of communities and workplaces around the world. Founded in 1901, Federal Signal is a leading global designer and manufacturer of products and total solutions that serve municipal, governmental, industrial and institutional customers. Headquartered in Oak Brook, Ill., with manufacturing facilities worldwide, the Company operates four groups: Safety and Security Systems, Environmental Solutions, Federal Signal Technologies, and Fire Rescue.
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