Commercial products propel Generac in Q1

Waukesha, Wis.-based Generac Holdings, the big player in power generation, reported double-digit sales gains in the first quarter of 2017. The lion’s share of growth came from its international segment and from commercial products.

Generac’s sales for the period ending March 31 were $331.8 million, up 15.8%. However, residential product sales were $154.9 million, down from $159.0 million in the prior year. Commercial & Industrial product sales increased to $151.4 million as compared to $103.0 million in the prior year.

Net income during the first quarter of 2017 was $12.8 million, as compared to $10.2 million in the same quarter last year.

“First quarter shipments were ahead of our expectations, with improved sales of commercial and industrial products leading the way during the quarter,” said Aaron Jagdfeld, president and CEO. “In particular, demand trends for domestic mobile products were much stronger as compared to the prior-year levels as our rental equipment customers began to replace and upgrade their fleets during the quarter. 

Jagdfeld added: “Importantly, higher power outage activity late in the first quarter, as well as the timing of certain end-user promotions, is helping to improve the pace of installations of home standby generators thus far in the second quarter.”

As previously announced, the company, on Jan. 1, closed on the acquisition of Motortech GmbH, of Celle, Germany. Motortech is a manufacturer of gaseous-engine control systems and accessories, which are sold globally to gas-engine manufacturers and to aftermarket customers. Motortech has over 250 employees located at its German headquarters, manufacturing plant in Poland and sales offices located in the U.S. and China.