Waukesha-based Generac Holdings Inc. continues to grow and reported a 28 percent increase in fourth quarter net sales to $342 million. For all of 2012 net sales were $1.176 billion, up 48.5 percent compared to 2011.
The manufacturer of generators and other engine power products reported net income of $28.3 million, or 41 cents per diluted share, for the fourth quarter and $93.2 million, or $1.35 per diluted share, for all of 2012.
“2012 was a tremendous year for Generac as we achieved record financial results with significant growth across all product categories and regions of the United States,” said Aaron Jagdfeld, president and chief executive officer. “With 49 percent growth in 2012 following 34 percent growth in 2011, we have nearly doubled the size of our business in the past two years and have used our positive momentum to reinvest heavily in our future over that time.”
Generac acquired Mexican generator manufacturer Ottomotores UK Ltd. for $46.5 million during the fourth quarter.
“Our efforts to become a more global player took a major step forward with the acquisition of the Ottomotores businesses,” said Jagdfeld. “With over 500 employees and locations in Mexico and Brazil, Ottomotores is a leading market share player in the growing Latin American standby power market. This acquisition provides us with the essential elements of a local manufacturing presence, added distribution and access to higher-power products that we believe are critical for us to begin building a foundation to successfully compete in the global market for backup power generation.”
Generac said it expects net sales to increase 10 percent in 2013, but operating expenses as a percentage of net sales are also expected to increase slightly.
Jagdfeld said the company is well positioned for growth and plans to introduce several new products this year.
“Over the course of the past two years, we have significantly increased our product development efforts by doubling the size of the company’s engineering functions and investing heavily in our capabilities,” he said. “We expect to bring more new products to market in 2013 than at any other time in the history of Generac which we believe will both add to our leadership positions in the markets for portable and home standby generators and significantly broaden our commercial and industrial product lines. As we focus on driving the adoption of back-up power generation for homes and businesses and diversifying our product offerings, our distribution channels and the geographies we serve, we are transforming Generac into a larger, more balanced company with improved global focus. Through innovation and solid execution in 2013, we expect to accelerate the penetration rate for home standby generators, increase our share of the commercial and industrial markets, and further diversify our business through new products and geographies. As a recognized leader in the market for back-up power, we believe Generac is incredibly well positioned to capitalize on the macro opportunities that are in front of us.”