Gibraltar Industries, Inc. (Nasdaq: ROCK), a leading manufacturer and distributor of products for building and industrial markets, today reported its financial results for the three and six month periods ended June 30, 2012. All financial metrics in this release reflect only the Company’s continuing operations unless otherwise noted.
“Gibraltar’s net sales increased 5% in the second quarter of 2012. Three percentage points were organic and the balance driven by acquisitions,” said Chairman and Chief Executive Officer Brian Lipke. “The leverage from the sales growth helped contribute to a net income increase of 10%. This improved performance was generated while incurring a less favorable raw material margin and the increased costs of merging our West Coast operations. We expect to complete the consolidation of these West Coast businesses over the next two quarters which bodes well for gradual earnings improvements.”
“From a top-line perspective, this was another solid quarter for D.S. Brown which was acquired April 1 st last year and for sales to customers in the oil and gas and industrial markets,” said Henning Kornbrekke, President and Chief Operating Officer. “Most important, we continued to hold our market share in major product categories, a result of our continuing efforts to provide our customers with new products, innovative marketing programs and outstanding customer service. Additionally, we expect the product lines acquired over the past fifteen months will expand into new markets and channels, adding value to national customers.”“Several factors affected our profitability in the second quarter,” Kornbrekke said. “We are combining four separate West Coast locations with similar products and market characteristics into an integrated entity with market differentiators that provide benefits to our customers, and our earnings included these costs along with a significant inventory write-down related to this initiative. Additionally, this quarter provided decreased market demand and more competitive conditions in certain product categories while we also benefited from lower SG&A expense.”