Gibraltar Industries reported net sales increased 30 percent in third quarter 2015 to $305 million. Adjusted net income was $15.7 million compared with $9.5 million in Q3 2014.
“Gibraltar delivered strong financial results in the third quarter, as we continued to execute on the value-creation strategy we introduced late last year,” said Chief Executive Officer Frank Heard. “Although we continue to see very little market lift in any of our businesses, consolidated net sales were up 30 percent from the third quarter of 2014. This growth reflected sales at RBI, a strategic acquisition that we completed in the second quarter. Organic sales were down 5 percent year-over-year, as ongoing soft demand in the Industrial and Infrastructure Products segment more than offset continued growth in our postal storage and roofing-related businesses in the Residential Products segment.”
Growth in the residential area was driven by strong demand for postal storage products as a result of conversion to centralized delivery by the U.S. Post Office. The company noted a modest decrease in demand for roofing-related products in Q3 and expects little increase in fourth quarter. Overall volume for roofing-related products is up 7 percent for full year 2015.
The industrial and infrastructure segment reported a 14 percent decline in Q3 revenue compared to the previous year. Revenue suffered from lower volume correlated to the downturn in the oil and gas industry as well as weaker foreign currencies in Canada and Europe. The segments exposure to transportation in the U.S. is dependent on government infrastructure funding. Gibraltar noted that the company backlogs have remained steady over the last 24 months with a “modest dip in quotations” in the last four of five months due to uncertainty about extension of the highway bill.
Looking ahead to full year 2015 results, Gibraltar expects earnings per share to be up substantially in the fourth quarter. For FY 2015 overall base business revenues are expected to increase 2 percent with single digit growth in residential sales more than offset by lower industrial and infrastructure sales.
The June acquisition of RBI Solar, Inc., Rough Brothers Manufacturing Inc., and affiliates (collectively “RBI”), is expected to add incremental revenues of $155-$166 million in 2015. As a result, full year 2015 revenue is anticipated to increase 15 percent y/y in the range of $990 million to $1 billion.
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