Loading...
•
Dec 31, 2019
Aaon Q4 2019 Earnings Report
Reported increased net sales and record gross profit due to investments in manufacturing equipment and operational improvements.
Key Takeaways
AAON reported a strong fourth quarter and full year 2019, with record sales and gross profit. The company's investments in new manufacturing equipment and operational efficiencies contributed to the positive results. They anticipate continued improvements in sales and earnings in 2020.
Net sales increased by 9.1% for the quarter and 8.2% for the year.
Gross profit increased by 30.7% for the quarter due to improvements in manufacturing capacity.
Net income increased by 33.2% for the quarter and 26.9% for the year.
The company continues to invest in strategic initiatives with a $73.2 million capital expenditure budget for 2020.
Aaon
Aaon
Forward Guidance
AAON expects improvements in both sales and earnings in 2020, driven by high backlog, price increases, and improvements in operational capacity and efficiency.
Positive Outlook
- High backlog containing 2018 price increases.
- Continual improvements in operational capacity.
- Ongoing improvements in efficiency.
- Strategic investments in operations and innovation.
- Strong financial condition.
Challenges Ahead
- Risks related to the impact of the error correction.
- Uncertainties in future prospects and developments.
- Potential differences between actual results and forward-looking statements.
- General economic conditions.
- Competition in the industry.