National Presto Industries, Inc. NPK reported an increase in both sales and earnings for the second quarter of 2024. Net earnings per share (EPS) stood at 85 cents, up from 77 cents in the second quarter of 2023.
The company recorded net sales of $85.1 million compared to $79 million in the same period last year.
National Presto demonstrated a strong overall performance in the second quarter of 2024, driven primarily by the Defense segment's robust growth. However, the company faces challenges in its Housewares/Small Appliances and Safety segments, impacting overall profitability.
Management highlighted the robust performance of the Defense segment, noting that increased shipments and operational efficiencies significantly boosted earnings. It also addressed the challenges in the Housewares/Small Appliances segment, citing higher shipping costs and necessary maintenance expenditures as primary factors for the decline in operating profit.
National Presto Industries, Inc. Price, Consensus and EPS Surprise
National Presto Industries, Inc. price-consensus-eps-surprise-chart | National Presto Industries, Inc. Quote
Segment Analysis
Defense Segment
The Defense segment witnessed a notable increase in sales, growing $6.4 million, or 10.8% compared to the same quarter last year. This growth was attributed to increased shipments from backlog orders. Operating earnings for the segment rose $1.9 million, or 27%, driven by higher volumes, a more favorable product mix and improved operational efficiencies.
Housewares/Small Appliances Segment
Sales in the Housewares/Small Appliances segment were relatively flat, experiencing a slight decline of $0.3 million, or 1.4%, from the prior year. However, the segment's operating profit fell sharply by $0.7 million, or 81.6%. This decrease was largely due to higher ocean shipping costs, a significant maintenance repair at the main facility, and adjustments in various accruals.
Safety Segment
The Safety segment continued to face difficulties, reporting a loss for the quarter. The sales were nominal, and the segment's performance was impacted by the ongoing challenges in the market for its carbon monoxide detectors and warning systems.
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