TULSA, OK — (Marketwire) — 08/04/11 — AAON, Inc. (NASDAQ: AAON), today announced its operating results for the second quarter and six-month period ended June 30, 2011.
In the quarter, net sales increased 7% to $69.1 million from $64.5 million, while net income decreased 34% to $3.8 million from $5.8 million in the second quarter of 2010. Earnings per diluted share were $0.15, down 35% from $0.23 for the same period a year ago, based upon 24.9 million and 25.5 million diluted shares outstanding for the three months ended June 30, 2011, compared to June 30, 2010, respectively. Net sales for the first six months of 2011 increased 13% to $129.0 million from $113.8 million in 2010, and net income decreased 31% to $7.5 million from $10.9 million. Earnings per diluted share were $0.30, down 30% from $0.43, based upon 24.9 million and 25.7 million diluted shares outstanding for the six months ended June 30, 2011, compared to June 30, 2010, respectively.
Norman H. Asbjornson, President and CEO, stated, „The increases in sales resulted primarily from a significant increase in sales to the replacement market (up to 70% of total sales vs. less than 60% in 2010), largely due to the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 signed into law on December 17, 2010, which allows 100% depreciation for qualified capitalized expenditures put in service in calendar year 2011.“
Mr. Asbjornson said, „The decreases in earnings were attributable to a number of factors, including primarily: (1) excess manufacturing expense items purchased in advance to avoid price increases; (2) higher costs of raw material and component parts; (3) lower productivity of workers and equipment caused by adverse temperature conditions resulting from previously reported storm damage to the roof of the Tulsa facility; and (4) manufacturing problems related to production facilities rearrangement.“
Mr. Asbjornson concluded by saying, „With most of these higher, abnormal costs and elective expenses behind us or abating, and taking into account our record backlog of $59.7 million at mid-year (up 35% from June 30, 2010), plus the fact that our recent price increases will fully impact sales in the third quarter and beyond, we anticipate continued increases in sales and improved profitability for the balance of 2011.“
The Company will host a conference call today at 4:15 P.M. ET to discuss the second quarter results. To participate, call 1-877-737-1669.
AAON, Inc. is a manufacturer of air-conditioning and heating equipment consisting of rooftop units, chillers, air handling units, condensing units, heat recovery units, commercial self-contained units and coils. Its products serve the new construction and replacement markets. The Company has successfully gained market share through its „semi-custom“ product lines, which offer the customer value, quality, function, serviceability and efficiency.
Certain statements in this news release may be „forward-looking statements“ within the meaning of Section 27A of the Securities Act of 1933. Statements regarding future prospects and developments are based upon current expectations and involve certain risks and uncertainties that could cause actual results and developments to differ materially from the forward-looking statements.
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