WAUKESHA, Wis.—Power equipment manufacturer Generac Holdings Inc. reported it second quarter results Thursday. Sales for the second quarter were $288.4 million, down 20.5 percent year-over-year. Net income for the second quarter was $14.8 million, down 72.5 percent from 2014.
Generac acquired Country Home Products—a manufacturer of professional-grade engine-powered equipment—and its subsidiaries, as announced on August 1, 2015.
Sales for the commercial & industrial segment were down 17.7 percent year-over-year, due to a decline in shipments to oil & gas markets and reduced shipments to telecom national account customers.
Residential product sales were down 25.7 percent year-over-year, primarily due to lower demand of home standby generators as a result of a power outage severity environment that continues to remain challenging.
“The power outage environment continued to remain challenging during the second quarter with overall outage severity during the first half being down significantly compared to prior year,” said Aaron Jagdfeld, President and Chief Executive Officer. “The record-low outage environment coupled with excess field inventory levels exiting the first quarter dampened demand for home standby generators more than expected during the second quarter. In addition, the rapid decline in oil and gas related investment together with ongoing softness in capital spending in the telecom sector continued to have a negative impact on year-over-year growth for our C&I products during the quarter.”
Year-to-date sales were $600.2 million, down 14.8 percent over the prior-year period. Profit decreased 61.1 percent to $34.5 million.
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