Genlyte Group Inc., Louisville, Ky., reported second-quarter net sales of $408.9 million, an increase of 11.7 percent compared to $366.1 million in the second quarter of 2006.
The company earned $37.4 million, up 4 percent from $35.9 million in the same period a year ago. Second quarter net income increased to $37.4 million, compared to $35.9 million reported for the second quarter of 2006.
“Our commercial lighting business grew moderately from last year, but the growth was offset by weakness in the residential sector,” said Larry Powers, chairman, president and chief executive. “In addition, results for the second quarter of 2006 include a spike in shipments in advance of a price increase during June 2006. Our core commercial business is participating in the commercial construction cyclical recovery that began earlier this year and should continue for the next year or two. However, we are seeing pockets of softness in the light commercial, suburban retail and stock and flow parts of the business.”
Powers said the company continues to see cumulative year-over-year cost increases in health care, aluminum, zinc and other materials. Key concerns in the near future are transportation and energy costs, and continued growth of the U.S. economy. “We believe the commercial construction markets will grow in 2007. However, unexpected economic changes could alter expectations,” he said.
Emcor Group Inc., Norwalk, Conn., said its second-quarter earnings rose 55 percent to $26.2 million, compared with $16.9 million during the same quarter a year ago. Revenues increased 15.2 percent in the second quarter of 2007 to $1.4 billion from $1.2 billion in the same period last year.
Frank T. MacInnis, chairman and CEO of EMCOR Group, said, “Our record second-quarter results reflect the continued strength and demand growth we’ve experienced in our end markets. Organic revenue growth in the quarter was a robust 11.5 percent, while our commitment to cost management created substantial leverage and increased profits. These results were driven by strong performance across our domestic operations, including excellent results within our U.S. Mechanical and Electrical segments, and continued strong performance in our facilities services segment, which grew in line with our expected rate for this business.”
Lamson & Sessions, Cleveland, said its second-quarter profit fell 34 percent because of declines in polyvinyl chloride (PVC) and high density polyethylene (HDPE) resin prices and a slowdown in the residential construction market.
Net income for the quarter was $9.3 million compared with $14 million in the prior year quarter. Net sales for the second quarter of 2007 were $138.1 million, compared with $162.3 million in the second quarter of 2006.
Revenue in the company’s biggest division, Carlon, fell 16 percent and PVC Pipe revenue dropped 37 percent during the quarter.
“These results represent the second-best second quarter in our company’s history, despite the impact of declines in PVC and high density polyethylene (HDPE) resin prices and a slowdown in the residential construction market,” said Michael J. Merriman, Jr., president and CEO. He said the cost of PVC and HDPE resins have fallen significantly since the very high levels in the first half of 2006.
Net sales for the company’s Carlon business segment were $65 million in the second quarter, compared with $77.3 million in the same period a year ago. The decrease reflects lower HDPE conduit selling prices, a downturn in residential construction activity, and reduced shipments of telecom and utility infrastructure products as projects are being spread out more evenly this year than in 2006.
Quanta Services Inc., Houston, said revenues in the second quarter of 2007 were $557.6 million compared to revenues of $514 million in the second quarter of 2006. For the second quarter of 2007, net income was $21.9 million, compared to net income of $17.7 million in the second quarter of 2006.
In July, Quanta secured a contract with Kenny Construction Co. to install the transmission infrastructure for Allegheny Energy’s 210-mile, 500,000V Trans-Allegheny Interstate Line (TrAIL) project. The new line, which spans Allegheny’s service territory from southwestern Pennsylvania through West Virginia to northern Virginia, will strengthen the reliability of the power grid serving the mid-Atlantic region of the United States. The project is currently in the planning and engineering phase with construction expected to begin in the summer of 2008 and to be completed in 2010.
Quanta Services Inc., Houston, said revenues in the second quarter of 2007 were $557.6 million compared to revenues of $514 million in the second quarter of 2006. For the second quarter of 2007, net income was $21.9 million, compared to net income of $17.7 million in the second quarter of 2006. In July, Quanta secured a contract with Kenny Construction Co. to install the transmission infrastructure for Allegheny Energy’s 210-mile, 500,000V Trans-Allegheny Interstate Line (TrAIL) project. The new line, which spans Allegheny’s service territory from southwestern Pennsylvania through West Virginia to northern Virginia, will strengthen the reliability of the power grid serving the mid-Atlantic region of the United States. The project is currently in the planning and engineering phase with construction expected to begin in the summer of 2008 and to be completed in 2010. “Our strong quarter, including 13 percent internal revenue growth from electric power and gas customers, reflects continued elevated spending by these customers,” said John R. Colson, chairman and chief executive officer of Quanta Services. “We are pleased with the results we achieved during the quarter despite experiencing extremely wet weather that hampered our performance in the South Central U.S. With backlog up $170 million or 13 percent compared to the second quarter of last year, we believe the future presents exciting growth opportunities for Quanta. We are in a strong position to support our customers as they focus on the delivery of reliable electric power and next-generation telecommunications services.” Quanta expects revenues for the third quarter of 2007 to range between $595 million and $615 million.
Encore Wire Corp., McKinney, Texas, said second-quarter earnings fell sharply as sales to residential construction firms slumped.
In the second quarter, net income dropped to $19.7 million from $57.1 million in the year-ago period. Sales fell to $333.6 million from $362 million.
Daniel L. Jones, president and CEO of Encore Wire Corp., said the margin compression the company experienced in the last two quarters abated somewhat in the second quarter of 2007. “Rising copper prices were a catalyst for increased wire prices and margins. However, certain competitors continue to respond to the slowdown in residential construction by cutting wire prices in an attempt to maintain market shares, compressing margins below our expectations at this level of copper prices.Our total unit volume measured in copper pounds shipped increased 6.7 percent in the second quarter of 2007 versus the second quarter of 2006,” he said.