ALLEGION REPORTS FIRST-QUARTER 2018 FINANCIAL RESULTS
First-quarter 2018 net earnings per share (EPS) of $0.75, compared with 2017 EPS of $0.71; Adjusted 2018 EPS of $0.80, up 9.6 percent compared with 2017 adjusted EPS of $0.73
First-quarter 2018 revenue of $613.1 million, up 11.7 percent compared to 2017, up 3.3 percent on an organic basis
First-quarter 2018 operating margin of 16.1 percent, compared with 2017 operating margin of 18.1 percent; Adjusted operating margin of 17 percent, declined 150 basis points compared with 2017 adjusted operating margin of 18.5 percent
Affirming prior outlook for 2018 full-year revenue and full-year EPS; Full-year 2018 reported revenue growth of 10.5 to 11.5 percent and organic revenue growth of 4 to 5 percent; Full-year 2018 EPS outlook of $4.20 to $4.35 and $4.35 to $4.50 per share on an adjusted basis
DUBLIN (April 26, 2018) - Allegion plc (NYSE: ALLE), a leading global provider of security products and solutions, today reported first-quarter 2018 net revenues of $613.1 million and net earnings of $72.2 million, or $0.75 per share. Excluding charges related to restructuring and acquisitions, adjusted net earnings were $76.6 million, or $0.80 per share, up 9.6 percent when compared with first-quarter 2017 adjusted EPS of $0.73.
First-quarter net revenues increased 11.7 percent, when compared to the prior year period (up 3.3 percent on an organic basis). Reported revenues reflect modest organic growth as well as benefits from acquisitions and foreign currency.
The Americas segment revenue increased 7.7 percent (up 2.7 percent on an organic basis). The revenue growth was driven by favorable price and high-teens growth in electronics, which offset the impact of order choppiness. The newly acquired TGP and AD Systems businesses contributed 4.7 percent to the overall growth.
The EMEIA segment revenues were up 26.9 percent (up 5.9 percent on an organic basis), reflecting solid volume, favorable price, favorable foreign currency and contributions from the QMI acquisition. The organic growth was driven by strong volume across most products and geographies along with solid price realization.
“First-quarter revenues increased in all three regions and reflected modest organic growth,” said David D. Petratis, Allegion chairman, president and CEO. “European markets continued to rebound and delivered solid organic growth for the region, while Americas’ end-market fundamentals remained strong, including electronics growth, which grew high-teens.”
The Asia-Pacific segment revenues increased 3.9 percent (up 0.2 percent on an organic basis). Favorable currency drove the revenue growth in the quarter.
First-quarter 2018 operating income was $98.7 million, a decrease of $0.8 million or 0.8 percent compared to 2017. Adjusted operating income in first-quarter 2018 was $104.2 million, representing an increase of $2.8 million or 2.8 percent compared to 2017.
First-quarter 2018 operating margin was 16.1 percent, compared with 18.1 percent in 2017. The adjusted operating margin in first-quarter 2018 was 17 percent, compared with 18.5 percent in 2017. The 150-basis-point decline in adjusted operating margin was driven by increased investments, dilution related to acquisitions, inflation and unfavorable mix partially offset by favorable price, productivity and volume.
“We delivered double-digit, top-line revenue growth in the quarter, while accelerated inflationary pressures challenged operating margins. Pricing in the quarter was solid, and even with the margin pressures, we delivered a nearly 10-percent increase in EPS. We remain focused on executing our strategy to drive increased shareholder returns and are well positioned to achieve the full-year commitments put forth in Allegion’s prior earnings call,” Petratis added.
Interest expense for first-quarter 2018 was $12.9 million, down from the $15.9 million for first-quarter 2017. The decrease is driven by the refinancing of the company’s debt completed in 2017.
The following information was filed by Allegion Plc (ALLE) on Thursday, April 26, 2018 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.