Financial Results ... Watts Water Technologies
Watts Water Technologies reported net income of $8.9 million, or 32 cents per share, for the third quarter ended Sept. 30, compared with $8.7 million, or 32 cents per share, last year. Sales increased 10% to $175.5 million. For the nine-month period ended Sept. 30, sales were up 13% to $514.7 million vs. $454.6 million in 2002. Net income for the nine-month period was $23.6 million, or 86 cents per share, which included a net loss from discontinued operations of $3,014,000, or 11 cents per share, compared with $25.5 million, or 94 cents per share, for the same period last year. The company's North American segment had a sales increase of 6% for the three-month period, achieved through a combination of organic sales growth and favorable exchange rates associated with the strengthening of the Canadian dollar vs. the U.S. dollar. Total sales into the North American home improvement retail market increased by 11% for the three-month period to $33.5 million for the third quarter. Sales into the North American wholesale market increased 4% to $87.5 million for the three-month period, attributed primarily to improved sales of the company's backflow prevention line. Watts Water Technologies derived 29% of its total sales for the third quarter from Europe. European sales increased by 29% in the third quarter due to the favorable change in foreign exchange rates, an internal growth rate of 9%, and the inclusion of acquisitions consummated during 2003. The company acquired Martin Orgee U.K. Ltd., located in Kidderminster, West Midlands, United Kingdom, in April, and Giuliani Anello S.r.l., based in Bologna, Italy, in July. While the company saw some increase in production levels at its new wholly-owned manufacturing plant in Tianjin, China, in the third quarter, the delay in production, inventory write-downs and other net adjustments had an adverse impact on cents per share for the third quarter.