AYI Shares Dip After Q3 Earnings Fall

Acuity Brands Inc (NYSE: AYI) reported a rise in its Q3 sales, while its earnings were down on the year-over-over basis.

The Atlanta, Georgia-based company said that its diluted EPS for the quarter came at $0.48, down from $0.52 in the year-ago period. AYI’s income from continuing operations stood at $21.3 million, as compared to $22.3 million in the prior-year period. The company’s net sales for the quarter rose 3% to $407.6 million, driven by a 4% rise in unit volume. A decline in product prices limited sales growth for the quarter.

AYI’s reported its Q3 operating profit at $39.2 million. Excluding special charge adjustment, the company’s adjusted operating profit came in at $38.9 million, or 9.5% of net sales, lower than $41.5 million, or 10.5% of net sales, in the same period last year.

“We are very pleased with our fiscal 2010 third quarter results as we continue to execute extremely well in a challenging environment. We achieved unit volume growth while certain key markets, such as commercial and office construction, continue to be negatively impacted by lower economic activity and tight lending standards for real estate. Similarly, we were encouraged by the improvement in our gross profit margin, which increased 140 basis points year-over-year to 40.1 percent. We improved our gross profit margin while experiencing price competition in certain channels and geographies, which we anticipated, and unfavorable changes in the mix of products sold,” Mr Nagel, Chairman, President, and Chief Executive Officer of Acuity Brands mentioned.

AYI’s shares dipped 11.52% to $36.25 at 10:27 am.

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