Generac Holdings posted net sales of $300.6 million in the third quarter of 2012, a 25.6-percent increase compared to $239.3 million for the third quarter of 2011, in line with the company’s expectations. Residential product sales jumped 17.8-percent compared to the third quarter of 2011. Commercial and industrial product sales soared 48.3 percent year over year.
Strong operating earnings during the quarter were offset by higher interest expense from the refinancing of the company’s senior secured credit facilities that closed May 30. As a result, net income for the quarter was $25.5 million compared to $37.4 million for the same period a year ago.
The company expects a sales boost from Hurricane Sandy. Generac is raising its sales growth guidance for full-year 2012 to the low 40-percent range compared to 2011, an increase from the low 30-percent range it previously stated.
“The events of the last few days continue to demonstrate for home owners and business owners the importance of having a backup plan for their power needs,” said Aaron Jagdfeld, president and CEO. “Automatic standby generators have emerged as a cost effective and increasingly important part of those backup plans. As a result of the increased awareness these outage events provide, adoption rates for home standby and light commercial generators have accelerated over the last several years. Shipments of home standby generators were again strong during the third quarter and have continued to build towards a new and higher baseline level of demand over the longer term. In our commercial and industrial markets, we continue to capitalize on our leadership position in natural gas backup generators as demand for these products continues to gain traction.”
Jagdfeld added that Magnum-branded light towers and mobile generators also are performing well.
Generac is based in Waukesha, Wis.