Higher margins and improved cash flows highlight a strong third quarter for US sensor manufacturer
Despite of a 6.4% YOY drop in overall revenues, Oregon-based FLIR Systems Inc presented shareholders with an encouraging financial report for the quarter ended September 30, 2018 on the strength of higher margins and improved cash flows.
Third quarter 2018 revenues were reported as US$434.9m, compared against overall revenues of $464.7m for Q3 2017. Organic revenue increased by 3.1% over the previous year, excluding revenues from acquisitions and divested security businesses.
GAAP gross profit was $222.1m, or 51.1% of revenues, compared to $222.9m or 48.0% of revenues for the same period last year. GAAP operating income increased by 1.7% to $88.6m compared to $87.1m for Q3 2017, representing a 160 basis point improvement in operating margin. Strong results in organic revenue growth are attributed to gains in the maritime and intelligent transportation systems sectors.
FLIR expects 2018 revenues to continue to be in the range of $1.78bn to $1.80bn and adjusted net earnings per diluted share to continue to be in the range of $2.17 to $2.22 per diluted share.
“Our continuous improvement initiatives through The FLIR Method are generating positive earnings momentum,” said FLIR president and CEO, Jim Cannon. “While still in the early stages, the team’s commitment to The FLIR Method is beginning to yield exciting results. In this past quarter, we made meaningful progress on our strategic priorities presented at investor day to fuel, feed, and focus the business, particularly in unmanned solutions.”