Hammond Power Solutions Inc. (“HPS”) has announced its financial results for the first quarter of 2013. The results show consistent performance, with some slight decreases from the first quarter of 2012.
Sales for the quarter-ended March 30, 2013 were $63,672, a slight decline of $1,982 or 3.0% from the Quarter 1, 2012 sales of $65,654. As a result of softer booking and sales activity in the quarter, sales in the U.S., were $35,185 in Quarter 1, 2013 a small decrease of $1,317 or 3.6% from Quarter 1, 2012. Canadian sales were $21,272 for the quarter, a decrease over Quarter 1, and 2012 of $3,698 or 14.8%. The Company realized International sales of $7,215 versus $4,182 in Quarter 1, 2012, an increase of $3,033 or 72.5%. International sales include revenues from our recent Italian acquisition, Marnate Trasformatori s.r.l. (“Marnate”) of $1,068 for the quarter.
“Our strong core capabilities, financial strength, as well as our broad geographical and market diversification will serve HPS in weathering the current economic turbulence,” commented Bill Hammond, Chairman & Chief Executive Officer of Hammond Power Solutions Inc.
The Company was not immune to the sluggish North American, European and Asian economies. The Company’s bookings for Quarter 1, 2013 decreased by 12.1% from Quarter 4, 2012 and were 13.2% lower than Quarter 1, 2012.
Gross margin rates for Quarter 1, 2013 finished at 24.0% versus 23.7% in Quarter 1, 2012, an increase of 0.3% of sales.
Mr. Hammond concluded, “We remain focused on our 2013 financial performance. The global economic recovery will be weaker than originally expected, nonetheless, we believe that our results will gain momentum through the year as most of our markets, particularly in the United States, accelerate. In addition to this, new business and increased market share will add to our financial results in the later quarters.”
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