Badger Meter reports record 3Q earnings

MILWAUKEE, Oct. 14, 2004 (BUSINESS WIRE) -- Badger Meter Inc. reported net sales for the third quarter of 2004 of $53,340,000, a 9.7% increase from sales of $48,613,000 for the same period a year ago. Net earnings were a record $3,389,000 or $0.99 per diluted share for the quarter, a 23.8% increase from net earnings of $2,644,000 or $0.80 per diluted share a year earlier.

For the first nine months of 2004, net sales were $156,492,000, a 15.3% increase from net sales of $135,704,000 for the same period in the prior year. Net earnings for the first nine months of 2004 were $8,816,000 or $2.60 per diluted share, a 43.6% increase from earnings of $5,956,000 or $1.81 per diluted share for the comparable prior period.

"Increased sales of automatic meter reading (AMR) systems for the water utility market drove our strong third quarter performance. Sales of residential AMR systems grew at a double-digit rate, due to the continuing success of Orion^®, our proprietary mobile radio frequency AMR system, along with increased sales of residential water meters equipped with AMR systems supplied by Itron, Inc.," said Richard A. Meeusen, chairman, president and CEO of Badger Meter. He also noted that net earnings for the third quarter were negatively affected by continuing operating losses related to the company's operation in France.

"We are broadening our AMR product line through recently announced alliances with companies that will use power lines to transmit data from water and gas meters to the utility. This builds on our existing ability to provide digital connectivity to our own and other AMR systems using radio frequency, telephone and satellite technology," said Meeusen. "Different utilities prefer different AMR solutions. Our goal is to meet the needs of our utility customers with a broad range of AMR products and technologies."

"As existing meter replacements come due, more utilities are evaluating the benefits of converting to automatic meter reading. With only 15% of residential water meters in the U.S. currently converted to AMR, we believe Badger Meter is well positioned to benefit from long-term growth opportunities in this market," said Meeusen.

Badger Meter is a marketer and manufacturer of flow measurement and control technology, developed both internally and with other companies, as well as the leader in providing digital connectivity to leading AMR technologies. Its products are used to measure and control the flow of liquids in a variety of applications.

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