GUELPH, ONTARIO — Hammond Power Solutions Inc. (“HPS”) (TSX:HPS.A) a leading manufacturer of dry-type and cast resin transformers and related magnetics, today announced its financial results for the fourth quarter of 2013.
Bill Hammond, Chairman and Chief Executive Officer of Hammond Power Solutions Inc. commented, “Hammond Power Solutions has come through one of the most challenging years since the recession started in 2008. A number of unexpected circumstances as well as higher levels of economic volatility buffeted our sales and profit performance during 2013. We are confident that our financial strength, core competencies and long term strategies will accelerate our growth as the global recovery begins.”
Sales for the quarter ended December 31, 2013 increased slightly by 0.4% from the comparative quarter last year. U.S. sales increased 1.8% from Quarter 4, 2012. In 2013, sales to the U.S. market of $138,481 decreased by 4.6%, compared to 2012 sales. Canadian sales decreased 16.8% from Quarter 4, 2012. Year to date Canadian sales were down in 2013, decreasing 16.4% from 2012. International sales in Quarter 4, 2013 were $7,522 versus $3,824 in Quarter 4, 2012, an increase of $3,698 or 96.7%. International sales were $24,694 in 2013 compared to $16,824 in 2012, an increase of $7,870 or 46.8%.
The Company realized an increase in bookings of 1.12% over Quarter 3, 2013 and an increase of 2.7% as compared against Quarter 4, 2012. Due to the softer North American, European and Asian economies, year-to-date bookings were lower by 1.1%.
Quarter 4, 2013 gross margin dollars decreased by $529 compared to Quarter 4, 2012. Gross margin rate decreased to 27.1% in Quarter 4, 2013 versus 28.1% in Quarter 4, 2012 as a result of market pricing pressures and lower manufacturing throughput and were 25.0% year to date 2013 versus 25.2% year to date 2012.
Bill Hammond further commented, “We are pleased with our solid gross margin rates for the year. Despite a slower than expected economy, we continued to increase our sales and market share through our U.S. distributor channel. Our expanded channel and geographical presence will benefit HPS even more as the U.S. economy begins to improve.”
Earnings from operations were $4,157 in Quarter 4, 2013 versus $5,545 in Quarter 4, 2013, a decrease of $1,388 or 25.0% and were $11,036 year-to-date in 2013, as compared to $18,180 in 2012, a decrease of $7,144 or 39.3%.
Mr. Hammond concluded, “We continue to implement operational and strategic initiatives to grow our sales, control our expenses, manage the company and build for the future.”Tagged with tED