Power equipment manufacturer Generac Holdings Inc. (NYSE: GNRC), Waukesha, WI, reported sales for the second quarter of $288.4 million, a decrease of 20.5 percent year-over-year. Profit decreased 72.5 percent to $14.8 million.
Commercial & industrial product sales were $134.6 million during the second quarter, down 17.7 percent from the prior-year quarter, primarily due to a decline in shipments to oil & gas markets and, to a lesser extent, reduced shipments to telecom national account customers.
Residential product sales were $133.5 million, down 25.7 percent from the prior-year quarter, primarily due to lower demand of home standby generators as a result of a power outage severity environment that continues to remain challenging.
“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 CEO. “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."
Year-to-date sales were $600.2 million, down 14.8 percent over the prior-year period. Profit decreased 61.1 percent to $34.5 million.
