Hughes Supply Inc., Orlando, had record results in its fiscal third quarter. The company posted a 90 percent rise in net income for the quarter ended Oct. 29 to $33.8 million, from $17.8 million, in the same period a year ago.
Revenue for the third quarter was a record $1.17 billion, an increase of 36 percent from $859.5 million during last year’s third quarter.
The company’s third-quarter results reflected continued strength in commercial and residential construction, and price increase due to higher commodity costs.
The electrical segment posted strong 18 percent sales growth, its third consecutive quarter of double-digit growth. Double-digit growth was reported across all geographic areas due to increased commercial construction activity and higher commodity prices. Higher prices for steel, copper and PVC-based products are estimated to account for about one-half of the sales increase.
Looking ahead, Hughes Supply said it sees fourth-quarter earnings of $16.5 million to $20 million on revenue of $1.04 billion to $1.07 billion.
Company President and CEO Tom Morgan said, “We are encouraged by demand in the commercial construction market and the residential activity in the attractive geographic markets in which we operate.
“In addition, we are seeing some improvement in industrial sector activity, which was down significantly last year. In the fourth quarter, we expect the seasonal slowdown in construction activity, stable to slightly moderating commodity prices, and more challenging comparisons from a strong fourth quarter last year to result in somewhat lower organic sales growth and gross margin from the levels of the last three quarters, but above last year. In addition, we will continue our investment spending in the fourth quarter to support our various strategic initiatives.”