Gibraltar Industries’ focus on its top products is paying off.
The Hamburg-based company’s profits more than quadrulpled during the second quarter, easily topping analyst forecasts, as a modest sales increase and improved efficiency combined to significantly strengthen Gibraltar’s earnings.
Gibraltar’s profits jumped to $17 million, or 53 cents per share, from $4.1 million, or 13 cents per share, a year ago. Excluding a 7-cent-per-share gain from the sale of a European industrial products unit, Gibraltar’s earnings of 46 cents per share were stronger than the 39 cents that analysts were expecting and better than the 25 cents per share that it earned last year before special charges.
Sales grew by 4 percent to $263.1 million from $253.2 million, although revenue growth was less than the $271.4 million analysts had forecast.
Despite expectations that its sales will drop by about 1 percent this year, Gibraltar said it expects to earn between $1.38 and $1.48 per share during 2016, more than the $1.37 that analysts were forecasting. The company said revenues are expected to be around $1.03 billion, down about $100 million from last year, largely because of the end of a $50 million contract to make cluster mail boxes and the sale of the European business.