MILWAUKEE, July 17, 2003 -- Badger Meter, Inc. reported results for the second quarter ended June 30, 2003.
Net sales for the second quarter of 2003 were $47,516,000, a 9.0% increase from sales of $43,586,000 for the same period in 2002. Net earnings were $2,606,000 or $0.78 per diluted share for the second quarter of 2003, up 12.3% from earnings of $2,320,000 or $0.70 per diluted share for the comparable prior period. Two acquisitions completed in the second quarter of 2002 contributed $6,009,000 to second quarter 2003 net sales, compared to a contribution of $2,500,000 in the second quarter of 2002.
For the first half of 2003, net sales were $87,091,000, a 7.5% increase from sales of $81,040,000 for the first six months of the prior year. Net earnings for the first half of 2003 were $3,312,000 or $1.00 per diluted share, down 15.7% from earnings of $3,927,000 or $1.20 per diluted share for the same period in 2002. The two acquisitions completed in the second quarter of 2002 contributed $11,440,000 to net sales for the first half of 2003, compared to a contribution of $2,500,000 for the same period in 2002.
The higher second quarter sales reflect increased sales of residential automatic meter reading (AMR) systems. Sales of electromagnetic flowmeters, automotive fluid meters and systems and small precision valves also increased in the second quarter of 2003, while sales of commercial meters and other industrial products were lower than the same period in the prior year.
Net income for the quarter was favorably impacted by the higher sales levels and currency translation gains primarily related to the strength of the euro, which had an after tax impact of $489,000 offset somewhat by the strengthening of the euro's affect on foreign purchases.
"We continued to make good progress in the second quarter. Sales activity increased and we are beginning to see positive signs in our markets. Shipments as part of a large metering project in Houston have resumed and are expected to continue for the remainder of the year and into 2004. In addition, we are receiving positive acceptance in the market for the new Orion® radio frequency AMR system we introduced in the first quarter," said Richard A. Meeusen, president and chief executive officer of Badger Meter.
"Although economic and industry conditions have been challenging, we have continued to invest in research and development and new products. In June, we introduced our new Absolute Digital Encoder, an alternative registration device that meets the needs of customers in a segment of the water utility market that we have not previously served," said Meeusen.
"Our focus continues to be on growing the company over the long term. The infrastructure is in place and we are encouraged by the recent increases in sales activity and the signing of several strategic water utility metering contracts. We are optimistic that these trends will continue into the second half of the year," 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.
Badger Meter company news is available 24 hours a day, on-line at: http://www.badgermeter.com.
