NVent Electric PLC issued its first earnings report as an independent company Thursday, beating analysts’ expectations with help from its growing electrical enclosures and fastening solutions divisions.
For the second quarter ended June 30, sales rose 6 percent to $543 million. Net income fell 39 percent to $43.3 million, or 24 cents per share.
“During the second quarter we made significant progress on our 2018 initiatives to stand up nVent as an independent, publicly traded company, drive organic growth and sequentially grow Enclosures margin,” CEO Beth Wozniak told analysts during a conference call early Thursday.
NVent Electric PLC became an independent and publicly traded company after being spun off from Pentair PLC on April 30. As a stand-alone corporation, nVent boasts 9,000 employees, a global headquarters in London and U.S. headquarters in St. Louis Park. It generates about $2.1 billion in annual sales from three key businesses: electrical enclosures, thermal systems and fasteners.
Excluding one-time and other corporate expenses, adjusted earnings were 44 cents per share, 7 cents above Wall Street analysts’ consensus estimates. On average, analysts had expected profits of 37 cents a share and revenue of $539 million for the quarter.
Sales for the company’s largest business, electrical enclosures, rose 9 percent to $256 million. Sales of the smallest business — electrical and fastening solutions — rose 6 percent to $148 million. Thermal management sales dipped 1 percent to $139 million. Wozniak said the thermal division was part of a “longer cycle energy business” that was still in recovery.
In past interviews, Wozniak said nVent’s focus will be helping customers keep their own workers and clients safe while maximizing plant efficiencies, lowering installation costs, improving temperature controls and reducing downtime.
This week she announced nVent’s first quarterly dividend (17.5 cents a share) and a repurchase plan that authorized buying back $500 million in stock over three years.