Generac sales jump 48% in Q2, net income rises slower

Citing strong organic revenue growth, Generac Holdings, Inc. of Waukesha reported a 48.2% increase in second quarter sales over the same period in 2011.

Generac, a manufacturer of generators and other engine-powered products, said net sales increased year-over-year to $239.1 million, as compared to $161.4 million in the second quarter of 2011. Residential product sales increased 33.8% over the second quarter of 2011, and commercial and industrial product sales increased 76.4% compared to the prior year second quarter.

However, restructuring costs prevented earnings from rising over the comparable quarter of 2011. Net income was $9.3 million, or $0.14 per share, for the second quarter, compared to $15.3 million, or $0.23 per share, for the same period of 2011. The most recent quarter includes a charge for refinancing costs.

Aaron Jagdfeld, president and CEO, said the market for Generac’s home standby generators continues to grow as more homeowners discover the importance of backup power. In the commercial and industrial market, he said mobile equipment is benefiting from a shift toward renting versus buying, and the demand for natural gas backup generators has increased in North America.

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