cover four my John. for morning, in all joining going you topics Thank to Thank remarks. This you, us. prepared I��m
in of fourth, our the about current we review business status I review quarter; results of see first our balance thinking First, the affairs of third, the like I employees; second, the would the current our I give will address for of how to and year. health will our you business; state our
first, status health. our the of employees’ So
employee each of I’m date. issues experienced that say we’ve monitor pleased few We and facilities, to health our COVID-related to to continue
hygiene implementing teams improved social Our done keep our people job safe. great facilities a industrial distancing processes, global product all supply and have leadership to and
CDC, are for global additional We authorities U.S. are the the were and our and other guidelines PPE, Disease Control, equipment, provide who people evolving the health recommended. or to following in personal protective Center for continuing
In U.S. to world, Infrastructure for as Security Electric infrastructure. products support published manufactures that world’s by well around guidelines similar guidelines possible, the governments remains Agency as accordance other open our Cybersecurity our the considered and are Electric Franklin and and essential workers with the Therefore, where Franklin critical business. distributes
review quarter will the first results. XXXX I now
our quarter first better results were Our than expectations.
mix, that than produced and While our an distribution manufacturing than weather, ahead operating our results last and expenses was With our year. were in better more improved margins revenues reduced digits, normal operating were revenue improvement expectations, double income down was of higher expectations.
also are driver per by increased And first quarter, Water earnings pumps the operating of pumping primary Overall, the in lower up equipment XX% share declined in expenses large was restructuring XX% organically, other deliveries before income exacerbated equipment sales. first on in municipal mostly our decline industrial customers the rental mining, and XXXX. Systems before decline prices. quarter used oil dewatering to our U.S. applications. the this restructuring of in versus expenses and X% These was In the revenue
in least Korea, business and this in all America pandemic. leading declined in to the were Canada growth the both the Japan our pump had but decline by not U.S. as at decline the modestly. in U.S. decline to China Pacific, EMEA, offset was enough where primary water Outside The in sales and was Water sales organic organic quarter. impacted in a sales We our global the Latin Asia robust partially and results Groundwater increased and U.S. well. dewatering Canada, factor Canada in and the sales Systems sales equipment
believe decline revenue business U.S., in not The in the but global rest distribution was declines business the these pandemic. sales Fueling that growth were sales business in quarter part anticipated China. and in more grow Asia U.S. of country results year. groundwater could sales quarter decline offset to up digits our due the we than over in continued Headwater, slightly in of the delivered the last to across expected. China The double of the outside first We with weak strong
ratio the of trailing consolidated net from continued first our the to reduction the capital. working focus basis, a we on XX-months working sales last During quarter, improved on of capital quarter year. The
So that’s first the quarter.
outlook. expressed on concern about Financially, few our and mind, John our complimented sheet. was for ago, some conservative balance that were liquidity we everyone’s current share on ago, strong. let’s some situation will weeks is months having more underlevered. a Franklin Now details company minutes. what’s Six our a talk investors potential in Six
consolidated South in impacted been locations Africa of we facilities to down time, three XX for Over of state-mandated having days. potentially had in periods been respectively. the last shut our of clean weeks South ranging was America for two and closed Europe, revenue. days facilities to closed closures. located couple for have account by have a Two facilities contaminated the principally Italy India. couple These two Northern about facilities Brazil weeks, in for both in our and Other weeks, temporary facilities distribution six X% of facilities Two our for as from a areas closed in several of our various of for case
the manufacturing and UK, principal Czech in this to Oklahoma the have Our Republic, Mexico, Wisconsin continued China, throughout operate uninterrupted. facilities time
flowing our keeping to the a and done customers. supply through product Our has drill flow job team factories our great
material proactively to working through labor suppliers disruptions. or help with them are We
longer-term some and opportunities to from We we’ll cases, sources or to have supply continue relocated for cost look changed quality, improve and delivery base. in our
facilities materially customers. closures we temporary to have our and operating mentioned are As this manufacturing ability of serve none speak our I morning, impacted the our
there impacts determined into from pumps customers’ our variety assessment, to From are demand have as continuously and We America. that production to determine will this moment, are applications major assessing in pandemic financial outlook to sale rental our behaviors. for patterns, we end sold in market primarily four to Water this company the XXXX negatively at impact our gas diminish. in for changes large North support in the due industrial our equipment is a follows: part and oil of This large this Systems, dewatering of demand will that,
on grow we replacement new with efforts our diversification, companies. pump channel equipment of large geographic, and and to sales market pump to Even have our sales through dewatering still reliance a rental end
Water existing areas with in XXXX, of As historically, bring reducing from seen purchases experienced one to the our we’ve Systems future of Water financial we customers response crisis cash. and their and Also of uncertainty see the in our in most down and cyclical consistent to demand inventories we XXXX the business. this of to their what is preserve significantly suppliers Systems
this different but carry downturn wholesale noted channel. and than crisis periods lesser the pandemic uncertain and been years many, who for a same. the distributor the We to rely customers will buy of with as groundwater customer curtail to and our large our them. downturn true financial has be this their actions equipment surface see demand, customers more the inventory or by for on extent, in us pumping distribution is our particularly retail the purchases ago, be and XX for may appear different, In reasons very As behavior uneven to
this market in a Fueling the driving traffic we reduced segment, marketers several The commensurate third notified canceled deferred builds by are in-store area our for new place. United is upgrades station their reduction the or and development of Systems recovery end in estimate with disruption to soon States, C-store being being timing a and that and of may large outright. and are when is too plans It take size
our revenues would signs already there. in China, we recovery a of see Additionally, be year XXXX we between fueling regulatory in although some transitional managements knew
could leaving So other or in the we America. we China seeing are markets cautious North are impacts offset any about global
Finally, the in more foreign-denominated details John this global U.S. versus many and translation earnings. will sales the on moment. hurt a strengthening give currencies, of of our dollar
our government-mandated and market the that profitability these financial impacts, entire to company considerations, the reducing base of Beyond and distribution, negative and company’s counter we’re the closures pay company us. negative accelerating restructuring To manufacturing efficiencies our deleveraging products, these their of of and affect to impact broadly delivery impacts operational may specific other end through that installation across experience stress may lost ability spending various customers the the fixed cost activities.
Moving of deem long-term forward, we we prudent, actions as balancing may additional and take the short the company. needs
weekly through XX%. week, last last currently terms in – decline from week both what the Fueling same averaged week Systems of from units from the and the Water has our year last sales In for seeing, about mid-March we’re
market. what our best groundwater U.S. in Headwater Our is an end forward is of happening distribution important indicator business,
sales year. last through down period the same mid-March Since week, X% Headwater about are last to
are orders, the that the However, about same significantly when California, states you week X% Headwater of last six most XXXX. were sales period impacted exclude the by higher Michigan than of Washington, the and stay-at-home
remains on even well of delays high our report some for is though completion products services. Headwater and services those it demand Our seeing that bullish and continues U.S. end the team markets serves in generally to drilling we’re the
stress to two In I closing, points. want
and people greatest Electric are a company. again great is our why such our strength proving are First, once Franklin
whatever So remain face. environment to in, marketplace ability despite company’s meet serve the I our and rapidly our we evolving in confident unprecedented and we’re customers demands
pandemic in our that markets, withdrawing and have uncertainties Second, given our earnings global we significant outlined here, at the XXXX are the impacts guidance of this time. we end
after revisit of guidance the will quarter. subject second the We
back now will to over I turn the John. John? call
