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IES reports 13.4 percent sales increase in 2Q

By Jack Keough

Integrated Electrical Services (IES) is reporting revenues of $122.0 million for its fiscal second quarter, an increase of 13.4% compared to the same quarter in 2012. The company also recorded a gross profit of $16.0 million, an improvement of $2.2 million from the second quarter of 2012.

In releasing the quarterly results, James Lindstrom, Chairman and Chief Executive Officer of IES, pointed out that the company’s profits and margins continued to improve in the second quarter.

“Our year over year improvements were largely driven by improving fundamentals in our residential and industrial branches, increased service revenues and solid execution on major data center projects and multiple commercial and industrial projects,” he said.

The results were negatively impacted by increased labor costs in the company’s residential division and additional expected costs remaining on a commercial project that began in 2009 and is scheduled to be completed in early fiscal 2014.

“While we are witnessing activity improve in most of our markets, including commercial, we remain cautious and focused on growing our recurring revenue base and improving margins and cash flow through operational discipline,” Lindstrom said.

IES is an infrastructure services company with leading positions in a broad range of markets for electrical and communications products and services.

During the quarter, IES Subsidiary Holdings Inc., a unit of Integrated Electrical Services, acquired MISCOR Group Ltd. for $24 million.

With annual revenues of approximately $50 million, MISCOR provides maintenance and repair services to industrial customers, including electric utility, wind power, transportation, energy, pulp and paper, steel and mining.

It is engaged in both on-site and off-site electrical and mechanical repair and remanufacture of industrial equipment including electric motors, transformers, switchgear, magnets, overhead cranes and generators. MISCOR also manufactures and provides repair services for key components in large transportation related motors and engines. MISCOR has locations in Indiana, Alabama, Ohio, West Virginia, Maryland and California.

Jack Keough was the editor of Industrial Distribution magazine for more than 26 years. He often speaks at many industry events and seminars. He can be reached at john.keough@comcast.net or keoughbiz@gmail.com

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