Manufacturers

nVent Electric’s Third Quarter Meets Expectations

nVent Electric’s Third Quarter Meets Expectations

LONDON — nVent Electric plc today announced financial results for the third quarter of 2018 and provided guidance for the fourth quarter and full-year 2018.

Highlights:

  • Reported sales of $564 million were up 4%; Organic sales up 5%
  • Reported EPS of $0.38; Adjusted EPS of $0.46
  • Reported return on sales of 16.6% or 20.4% on an adjusted basis
  • Reconciliations of GAAP (reported) to Non-GAAP measures are in the attached financial tables.

Third quarter sales of $564 million grew 4 percent relative to the third quarter 2017 and grew 5 percent organically, which excludes the impact from currency fluctuations. Third quarter 2018 earnings per diluted share (“EPS”) were $0.38 while on an adjusted basis, the company had EPS of $0.46. Segment income, adjusted net income, free cash flow and adjusted EPS are described in the attached schedules.

Third quarter 2018 operating income was $94 million, down from $100 million in the same quarter in 2017. On an adjusted basis, segment income excluding corporate and other costs was $128 million, up 5 percent compared to the third quarter of 2017.

“nVent posted strong sales in the third quarter growing 4 percent as reported or over 5 percent organically, which was above the high end of guidance. We are executing on the One nVent strategy to deliver growth as demonstrated in the third quarter,” said Beth Wozniak, nVent’s Chief Executive Officer. “Reported EPS of $0.38 and adjusted EPS of $0.46 were in line with our prior guidance and we feel confident in our ability to deliver on our 2018 commitments.”

THIRD QUARTER PERFORMANCE ($ in millions)

Enclosures sales growth was broad-based across geographic regions and verticals. Third quarter ROS improved 10 basis points as the company saw positive price and productivity while continuing to make progress on its commitment to improve segment margin.

Thermal Management saw positive organic growth while up against a difficult comparison to 2017. Sales strength was driven by our Industrial Maintenance, Repair and Overhaul and Commercial businesses, and we saw a modest contribution to sales from our longer cycle Energy business.

EFS saw steady demand for its products across multiple verticals, which resulted in strong sales growth during the quarter. A combination of price plus productivity were the main drivers behind the 130 basis point ROS expansion.

GUIDANCE FOR FULL-YEAR AND FOURTH QUARTER 2018

The company now estimates reported sales growth for the full-year 2018 of 4 to 5 percent, which represents 3 to 4 percent organic growth versus the prior year. The company has narrowed its estimate of guidance for full-year 2018 GAAP EPS to $1.28 to $1.32 and $1.73 to $1.77 on an adjusted basis.

The company estimates reported sales growth for the fourth quarter of 2018 of 1 to 3 percent and 2 to 4 percent on an organic basis. The company estimates fourth quarter 2018 EPS on a GAAP basis of $0.37 to $0.41 and adjusted EPS of $0.44 to $0.48.

DIVIDENDS

nVent previously announced on July 23, 2018 that its Board of Directors approved a regular cash dividend of $0.175 per share, which was paid during the third quarter on August 17, 2018. nVent also announced on September 18, 2018 that its Board of Directors approved a regular cash dividend of $0.175 per share, payable during the fourth quarter on November 2, 2018.

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