Oak Brook-based Federal Signal Corporation today reported third quarter sales were up 10 percent based on increased sales and an increase in product prices.
Net sales for the quarter were $185 million, up 10 from the same period last year. Operating income increased 46 percent from the same period last year, to $12.4 million. Earnings from continuing operations were 7 cents per share, compared to 5 cents per share last year.;
While work backlog was up 28 percent to to $326 million, new orders declined 4 percent, the company said in a release.
The company noted money from the sale of FSTech was used to pay down debt by $75 million, creating the opportunity to substantially reduce interest expense through refinancing in 2013.
The company said the quarter reflects a positive trend throughout the year as product shipments have increased in all the company's segments, coupled and minor price increases. The increases are partially offset by lower export sales to areas of Asia and international currency fluctuations.
"We are beginning to reap the rewards of our 80/20 initiatives. Our commitment to profitable growth is evidenced by our 6.7 percent operating margin in the quarter, up from 5.1 percent during the same prior year period." said Dennis J. Martin, president and chief executive officer, "The third quarter marked both continued improvement in our income statement and fundamental restructuring of our balance sheet, the combined effect of which will build our shareholders' value over the long term.
We are committed to long-term margin expansion and continued gains in shareholder value in 2013, but we are aware of the impact global economic challenges can have on demand and are prepared to act as conditions warrant," Martin added.