Sales up but earnings down for FLIR
Revenue growth offset by earnings drop for imaging and electronics manufacturer.
Thermal imaging and electronics manufacturer, FLIR Systems grew its revenue by 7% in 2016, up from US$1.56 billion to US$1.66 billion. However net income over the same period fell by 31% from US$241.7 million in 2015 to US$166.6 million in 2016.
After taking a hit in 2015, sales in the marine sector which includes FLIR thermal imaging cameras and Raymarine electronics rebounded with revenue growing by 4.3% to US$186 million and earnings up by 13% to US$15 million.
FLIR also provides adjusted figures which removes items which it believes are “not reflective of ongoing operating performance”. On the basis of these figures, adjusted net income for the company as a whole was virtually unchanged at US$234 million.
"We are pleased with the progress we have made in building our core business, the addition of the new business areas through the four acquisitions we completed this year, and our strong operating cash flow growth," said Andy Teich, president and CEO of FLIR (pictured). “While we are disappointed with this quarter's results from a margin perspective, we are confident in our ability to drive continued growth and improve margins in 2017.
“During 2016 we expanded our market share in nearly all of the markets we serve and built a strong backlog as a foundation for 2017. We look forward to the launch of several new product platforms in the first half of the year which should drive further growth.”
For 2017, FLIR expects revenue to be in the range of US$1.78 billion to US$1.83 billion and adjusted earnings per diluted share to be in the range of US$1.81 to US$1.91, representing 7% to 10% growth in revenue.
Coinciding with the release of the latest results, FLIR announced that Andy Teich will be stepping down from his position of president and CEO pending retirement, remaining in the role until a successor is appointed.
Teich joined FLIR in March 1999 after it acquired Inframetrics where he worked as a pioneer in the commercialisation of thermal imaging technology since 1984. He has been in his current role as president and CEO of FLIR since May 2013.
"Andy has been a strong leader for FLIR, and we are grateful for his accomplishments during his 33 years of dedicated service,” said Earl R. Lewis, chairman of the FLIR board of directors. “As CEO, Andy helped take FLIR's business to a new level by, among other accomplishments, leading the expansion of our product offerings, entering new markets and completing key strategic acquisitions.
“We look forward to continuing to work with Andy while we conduct a thoughtful search process and lay the foundation for a smooth transition.”