Waukesha-based power generation equipment manufacturer Generac Holdings Inc. today reported second quarter net income of $14.8 million, or 21 cents per share, down from $54 billion, or 77 cents per share, in the second quarter of 2014.
Operating income was $39.5 million, down from $78.2 million in the same period a year ago.
Quarterly revenue totaled $288.4 million, down from $362.6 million in the second quarter of 2014.
The company attributed the decreases to fewer power outages, resulting in lower sales of its home standby generators. The Commercial & Industrial segment also saw lower sales, due to a decline in oil & gas and telecom shipments.
Earlier this week, Generac acquired Vergennes, Vt.-based Country Home Products Inc. Country Home Products manufactures engine-powered equipment used in property maintenance.
“The power outage environment continued to remain challenging during the second quarter, with overall outage severity during the first half being down significantly compared to prior year,” said Aaron Jagdfeld, president and chief executive officer. “The record-low outage environment, coupled with excess field inventory levels exiting the first quarter, dampened demand for home standby generators more than expected during the second quarter. In addition, the rapid decline in oil and gas related investment, together with ongoing softness in capital spending in the telecom sector, continued to have a negative impact on year-over-year growth for our C&I products during the quarter. On the acquisition front, the Country Home Products transaction that we announced earlier this week broadens our residential engine-powered tools platform, while also further diversifying our business.”
