WASHINGTON (dpa-AFX) - Griffon Corp. (GFF) on Thursday reported a surge in net income for the first quarter to $29.5 million or $0.55 per share from $10.6 million or $0.24 per share in the prior-year quarter.
Adjusted earnings for the quarter were $0.56 per share, compared to $0.36 per share in the previous-year quarter.
Net sales for the quarter rose to $609.29 million from $548.44 million last year.
On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.32 per share for the quarter on revenues of $573.82 million. Analysts' estimates typically exclude special items.
In November 2019, Griffon said it has developed a next-generation business platform for Consumer and Professional Products or CPP to enhance the growth, efficiency, and competitiveness of its U.S. operations.
Griffon announced in November 2020 that it broadened this strategic initiative to include additional North American facilities, the AMES UK and Australia businesses, and a manufacturing facility in China.
The company noted that expanding the roll-out of the new business platform from its AMES U.S. operations to include AMES' global operations will extend the duration of the project by one year, with completion now expected by the end of calendar year 2023.
When fully implemented, these actions will result in annual cash savings of $30 million to $35 million, and a reduction in inventory of $30 million to $35 million, both based on fiscal 2020 operating levels.
The company added that the cost to implement this new business platform, over the duration of the project, will include one-time charges of about $65 million and capital investments of about $65 million.
Copyright RTT News/dpa-AFX
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