Acuity Brands Inc., Atlanta, reported record results for the third quarter of fiscal 2008. Income from continuing operations for the quarter rose 21 percent to $41.7 million compared with $34.3 million for the prior year third quarter. The Company generated record third quarter net sales of $512.4 million, a 2 percent increase over $502.4 million reported in the year-ago period.
The year-over-year increase in net sales reflects more favorable pricing and an enhanced mix of products sold, highlighted by greater shipments of proprietary energy-efficient fixtures for new construction and the relighting of existing non-residential buildings, the company said.
“Looking ahead, various leading indicators such as employment, housing demand, consumer sentiment, bank lending standards, and commodity prices are signaling a slowdown in future non-residential construction activity, our primary market,” said Vernon Nagel, Acuity Brands’ chairman, president and chief executive. “Accordingly, we anticipate unit sales growth to be challenging for the remainder of fiscal year 2008 and into 2009. The company's backlog at May 31, 2008 was approximately $182 million, down 4 percent compared with the prior year. While positive factors such as a decline in past due orders and reduced lead times resulting from our improved delivery performance contributed to this decline, we have experienced modest softness in incoming orders over the past couple of months and expect them to remain soft for the foreseeable future. In addition, we expect to experience pressure on gross margins in the fourth quarter as a result of significant increases in commodity costs such as steel, aluminum, plastics, and copper as well as higher freight costs due to the significant rise in the price of diesel fuel.”
“We also see growth opportunities by furthering our market presence, such as our expansion into the New York City metropolitan area where we have historically had limited participation in this large and dynamic market,” Nagel added.
Cooper Industries Ltd., Houston, reported that second quarter 2008 revenues increased 18 percent to $1.72 billion, compared with $1.46 billion for the same period last year. Net income excluding unusual items rose 18 percent to $171.1 million, compared with $145.1 million for the prior year's second quarter excluding unusual items.
"In the second quarter, we built on our very solid start to 2008. We delivered strong growth in developing markets as well as in our energy, utility and industrial businesses. Core revenue growth of 7 percent was supplemented by acquisitions, which contributed nearly 8 percent, as well as almost 3 percent from currency translation," said Cooper Industries Chairman and Chief Executive Officer Kirk S. Hachigian.
Revenues in the company’s Electrical Products segment for the second quarter increased 19 percent to $1.51 billion, compared with $1.27 billion in the second quarter 2007. Segment operating earnings were $259.0 million, an increase of approximately 21 percent from $213.9 million in the prior year's second quarter.