Genlyte Announces Record Second Quarter Sales and Earnings.

LOUISVILLE, Ky., July 26 /PRNewswire-FirstCall/ -- The Genlyte Group Incorporated today announced record second quarter net sales of $408.9 million, an increase of 11.7% compared to $366.1 million in the second quarter of 2006. The Company also reported record second quarter earnings per share of $1.29, a 4.0% increase over the $1.24 reported for the second quarter of 2006. Second quarter net income increased to $37.4 million compared to $35.9 million reported for the second quarter of 2006.

The second quarter 2006 income before income taxes included a one-time $7.2 million ($4.4 million after-tax) foreign currency exchange gain related to the return of capital from Canada. The $7.2 million ($4.4 million after- tax) gain was recognized through a reduction of the currency translation adjustment section of accumulated other comprehensive income, which is part of stockholder's equity but not earnings. Excluding this 2006 foreign currency exchange gain, net income and earnings per share improved 18.7% and 18.3% respectively.

Year-to-date earnings per share were $2.49 compared to $2.94 for the first half of 2006. Year-to-date net income was $72.3 million compared to $84.5 million last year. The first quarter 2006 net income included a one-time net tax benefit of $24.7 million, or $0.86 per share, related to a change in corporate tax structuring. In addition, the second quarter of 2006 included the $7.2 million ($4.4 million after-tax) or $0.15 per share impact of the foreign currency exchange gain. After excluding the combined $1.01 impact of these two items from the 2006 year-to-date earnings per share of $2.94, the first half 2007 earnings per share increased 29.0%. Sales during the first six months of 2007 increased 15.5% to $803.3 million from $695.3 million in 2006.

Chairman, President and CEO Larry Powers said, "We are pleased to report second quarter increases in both sales and earnings. Our focus on higher margin product lines and the price increases helped us achieve higher sales and gross margins for the second quarter.

"Our commercial lighting business grew moderately from last year, but the growth was offset by weakness in the residential sector. In addition, results for the second quarter of 2006 include a spike in shipments in advance of a price increase during June 2006. Our core commercial business is participating in the commercial construction cyclical recovery that began earlier this year and should continue for the next year or two. However, we are seeing pockets of softness in the light commercial, suburban retail, and stock and flow parts of the business.

"We are pleased with the second quarter gross margin increase to 40.6% compared to 39.4% last year. The operating profit margin increased during the second quarter to 14.7% from 14.0%. These margin increases are primarily attributed to the effective price increases, increases in volume which leverage our fixed costs, and the benefit of mix from selling higher value added products. The operating profit margin improvement was partially offset by the impact of working capital currency translation losses totaling $2.3 million, which were recognized during the current year related to the…