Generac’s profit increases 56 percent

Monday, Feb 21, 2011

Generac Holdings Inc. announced that fourth-quarter 2010 net income rose nearly 56 percent to $18.6 million, or 28 cents per share, compared with $11.9 million for the fourth quarter of 2009.

Sales for town of Genesee-based manufacturer of backup power generation products rose 4.6 percent in the quarter to $161 million, compared with $154 million for the year-ago period.

For the full year, Generac (NYSE: GNRC) said its net income climbed 32.2 percent to $56.9 million, compared with $43.1 million for 2009. Sales for the year rose 0.8 percent to $592.9 million, compared with $588.2 million for the prior year.

“Despite certain headwinds, sales of our residential generators proved resilient throughout the year and we built a strong foundation for the future through the introduction of new products and the addition of new distribution outlets,” Generac president and CEO Aaron Jagdfeld said.

Company management doesn’t expect a near-term recovery in U.S. residential investment and Generac isn’t forecasting any major power outages, Jagdfeld added. Nevertheless, the company expects growth from its residential products through additional new product introductions and increased domestic and international distribution, he said.

The company’s long-term growth strategy is focused on four key objectives — growing sales in the residential standby generator market; gaining industrial market share; expanding product offerings to diversify end markets; and expanding into new geographic regions, Jagdfeld said.

“We have identified and started to implement initiatives to support each of these strategic objectives, and over the next several years we believe we will make substantial progress towards achieving our long-term growth goals,” he said.

Source:  Biz Journals