Watsco, a distributor of heating and cooling systems, reported second quarter revenues on Tuesday were a record $1.22 billion, up 5 percent year-over-year. Profit increased 16.6 percent to $65.4 million in the second quarter, making it the most profitable quarter in its history, the Miami-based company said.
Earnings per share grew 16 percent to a record $1.85 and operating income also reached a record, growing 11 percent. HVAC equipment sales grew 7 percent in the quarter.
For the first six months, sales were $2.03 billion, up 5 percent over the same period a year ago. Profit grew 21.4 percent to $88.5 million.
“Our second quarter performance produced the highest sales, profits and operating margin of any quarter in Watsco’s history,” said CEO Albert Nahmad in a statement. “Earnings growth and margin expansion were driven by a combination of solid sales growth, better selling margins and operating efficiencies. We remain focused on our fundamentals – gaining market share for our supplier partners, improving operating efficiency and having the products and people in place to best serve our customers.”
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The company has also added about 100 employees this year, said Nahmad. Watsco’s outlook for 2015 remains in the range of $5 to $5.20 earnings per share, which represents a growth rate of 16 percent to 20 percent over 2014 results.
Watsco sells is HVAC equipment in the U.S., Canada, Mexico and Puerto Rico and exports to Latin America.