ALLEGION REPORTS FOURTH-QUARTER, FULL-YEAR 2016 FINANCIAL RESULTS,
PROVIDES 2017 OUTLOOK
Fourth-quarter 2016 earnings per share from continuing operations (EPS) of $0.77, compared with 2015 EPS of $0.74; 2016 adjusted EPS of $0.81, compared with 2015 adjusted EPS of $0.89; Both reported and adjusted EPS for fourth-quarter 2016 include a $15 million or $0.10 per share environmental remediation charge in the Americas segment
Fourth-quarter 2016 revenue of $569.7 million, up 4.4 percent compared to 2015 and up 5.2 percent on an organic basis
Full-year 2016 EPS of $2.36, compared with 2015 EPS of $1.59; 2016 adjusted EPS of $3.34, up 10.2 percent compared with 2015 adjusted EPS of $3.03; Both reported and adjusted EPS for full-year 2016 include a $15 million or $0.10 per share environmental remediation charge in the Americas segment
Full-year 2016 revenue of $2.24 billion, up 8.2 percent compared to 2015 and up 5.8 percent on an organic basis
Full-year 2016 available cash flow of $335 million, an increase of $112.8 million or 50.8 percent versus prior year
Full-year 2017 reported and organic sales growth are both forecasted to be up 5.5 to 6.5 percent; Full-year 2017 EPS outlook of $3.55 to $3.70 on both a reported and adjusted basis
DUBLIN (Feb. 9, 2017) - Allegion plc (NYSE: ALLE), a leading global provider of security products and solutions, today reported fourth-quarter 2016 net revenues of $569.7 million and net earnings of $74.8 million, or $0.77 per share. Excluding charges related to restructuring, acquisitions and divestitures, adjusted net earnings were $78.7 million, or $0.81 per share, down 9 percent when compared with fourth-quarter 2015 adjusted EPS of $0.89. Both reported and adjusted net earnings for fourth-quarter 2016 include an environmental remediation charge of $15 million or $0.10 per share.
Fourth-quarter 2016 net revenues increased 4.4 percent, when compared to the prior year period (up 5.2 percent on an organic basis). Reported revenues reflect positive organic growth that was offset slightly by foreign currency. The organic growth was driven by strong performance in the Americas segment, reflecting continued strength in the region’s channel initiatives, improving end markets, and growth from new product introductions associated with investments.
The Americas segment revenues increased 7 percent on both a reported and an organic basis. The region had strong growth in both mechanical and electronic product categories in the fourth quarter of 2016, off of a tough comparison from the prior year. The organic growth was driven by high-single digit non-residential and mid-single digit residential growth. Growth in both non-residential and residential markets continues to be favorable.
The EMEIA segment revenues increased 0.2 percent (up 1.4 percent on an organic basis), reflecting continued pricing performance offset by unfavorable foreign currency. The organic growth was driven by solid growth in portable security and steady growth in the SimonsVoss business.
The Asia Pacific segment revenues were down 8.5 percent, when compared to the prior year period (down 0.7 percent on an organic basis). Reported revenues were impacted by the divestiture of the system integration business. The decline in organic revenue was primarily due to timing of orders, as well as large non-recurring projects in the fourth quarter of 2015.
Fourth-quarter 2016 operating margin was 17.1 percent, compared with 14.9 percent in 2015. The adjusted operating margin in fourth-quarter 2016 was 17.9 percent, compared with 19 percent in 2015. The decline in adjusted operating margin is driven by a $15 million, or -260 basis point, environmental remediation charge during the quarter in the Americas segment. Excluding the environmental charge, the operational improvement reflects good leverage on incremental volume, productivity and continued progress in the EMEIA transformation. These benefits more than offset inflation and incremental investments.
“Allegion's fourth-quarter results show continued momentum in driving industry-leading organic revenue growth and operating performance,” said David D. Petratis, Allegion chairman, president and CEO. “We are well-positioned going into 2017 to drive strong organic growth, expand operating margins and continue to create value for our shareholders.”
The following information was filed by Allegion Plc (ALLE) on Thursday, February 9, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.