Aug 3, 2021
The sales increase, from $75.4 million in Q2 2020 to $88.3 million in Q2 2021, was just one of several positive second quarter indicators for the leading manufacturer of dry-type and cast resin transformers and related magnetics.
Compared to the same time last year, bookings increased 33% and the order backlog increased 14%. Net Earnings increased 6.1% in the quarter and 6.4% year-to-date, and earnings per share increase in the Quarter to $0.40 and $0.59 year-to-date.
“Over the last five years we have invested heavily in our distributor network, doubling its size, diversifying the product offering and significantly expanding our sectoral reach,” says Bill Hammond, Chairman and CEO of Hammond Power Solutions. “Hammond is experiencing a resurgence in business activity across all sectors which is underpinned by the strength in our network. Our leading market position in this economic recovery phase and focus on quality have accelerated our growth as we gain footholds in new markets including, solar, energy storage, and electric vehicle charging. We are also seeing strength in the more cyclical sectors we have traditionally served, including mining and oil and gas markets, driven higher by the recovering global economy and ongoing consumption of resources.”
“Our second quarter financial results were highlighted by an increase in our profitability, through a combination of sales growth, cost reductions, higher manufacturing volumes as well as the ability to realize selling price increases,” says Richard Vollering, CFO of Hammond. “Looking forward, we will continue to implement price increases to meet inflationary pressure that will impact previously booked back log. We expect to see these increases work their way through our back log in the second half of 2021.”