GUELPH, Ontario — Hammond Power Solutions Inc. announced its financial results for the first quarter of 2015.
Sales for the quarter-ended March 28, 2015 were $63,137, an increase of $3,184 or 5.3% from Quarter 1, 2014 sales of $59,953. The Company has been lifted by a modestly improved, construction, alternative energy, and project market segments. International sales for Quarter 1, 2015 finished at $7,336 versus $8,276 in Quarter 1, 2014, a decrease of $940 or 11.4%.
The Company increased bookings 14.8% over Quarter 1, 2014 due to stronger bookings in both the distributor and direct channels in North American and International markets. Booking rates in the distributor channel increased 11.4% over Quarter 1, 2014. On a direct channel basis, bookings exceeded Quarter 1, 2014 by 17.8%. Backlog increased 16.6% over Quarter 4, 2014 and finished higher by 15.8% when compared to Quarter 1, 2014 due to higher booking rates in several markets including the Canadian and U.S. OEM markets.
HPS CEO, Bill Hammond commented, “We are enjoying the largest growth in bookings and backlog across all of our global operations since 2012.”
Quarter 1, 2015 earnings from operations was $1,446, an increase of $143 or 11.0% from $1,303 for the same quarter last year. The improvement in the quarter is a result of higher sales, increased gross margin dollar contribution and a higher foreign exchange gain.
In Quarter 1, 2015, the Company announced that it had completed the formation of a new joint venture company, Corefficient S. de R.L. de C.V. (“Corefficient”). Corefficient will design, manufacture and market energy efficient electrical cores, a major component used in the manufacture of dry type and liquid filled transformers. Corefficient will be based out of Monterrey, Mexico, where a state of the art manufacturing facility is currently under construction and will be fully operational by the fourth quarter of 2015.
Hammond commented, “Corefficient is an exciting venture and is reflective of the strong, long-term relationship between Hammond Power Solutions Inc. and National Material LP. Both partners bring the value of people, technology and financial strength to Corefficient. The manufacturing operation will be world class.”
Mr. Hammond concluded, “We are cautiously optimistic about our growth going forward. This is supported by our growing bookings and backlog and we continue to expand our penetration of the geographies we serve. We are confident that our financial strength, core competencies and long term strategies will accelerate our growth as markets start to improve.”Tagged with HPS, tED