Brown Deer-based water meter manufacturer Badger Meter Inc. has reported second quarter net income of $7.9 million, or 55 cents per share, down from $8.8 million, or 61 cents per share, in the second quarter of 2014.
Operating income totaled $12.2 million in the second quarter, down from $14.2 million in the same period a year ago.
Selling, general and administration expenses increased from $20.6 million to $23 million year-over-year. Also contributing were higher health care costs, increased software amortization and increased sales and marketing efforts in California that increased the cost of sales from $60.8 million to $63.8 million.
Revenue was $98.9 million during the second quarter, up 3.4 percent from $95.7 million in the second quarter of 2014.
“The quarter benefited from a positive contribution from National Meter and Automation, and while we also had higher sales of municipal water products, they were lower than we anticipated,” said Richard Meeusen, chairman, president and chief executive officer of Badger Meter. “In addition, sales of flow instrumentation products were down for the quarter.”
“While second quarter sales were a record, they were not at the level we anticipated. The quarter started strong in April, followed by a slower May and a slightly improved June. Although the slow-growth economy will remain a headwind in the months ahead, we are optimistic about the growth opportunities for both our new products and products currently under development. We believe our strong fundamentals and the macro drivers of conservation and sustainability will continue to provide long-term growth opportunities for Badger Meter.”
