ATLANTA--(BUSINESS WIRE)--Acuity Brands, Inc. (NYSE: AYI - News) today announced record results for the third quarter of fiscal 2008, including a 29 percent increase in diluted earnings per share (EPS) from continuing operations of $1.01 compared with $0.78 for the prior year period. Income from continuing operations for the third quarter of fiscal 2008 rose 21 percent to $41.7 million compared with $34.3 million for the prior year third quarter. Prior year’s third quarter EPS from continuing operations included $0.10 from a pre-tax gain of $6.6 million for a favorable legal settlement at Acuity Brands Lighting related to a long-standing commercial dispute. Excluding the favorable legal settlement in the prior year, 2008 third quarter diluted EPS increased 49 percent versus the year ago period while income from continuing operations rose 39 percent. The Company generated record third quarter net sales of $512.4 million, a 2 percent increase over $502.4 million reported in the year-ago period.Vernon J. Nagel, Chairman, President, and Chief Executive Officer of Acuity Brands remarked, "We are very pleased to report record year-over-year results from continuing operations for the 13th quarter in a row. Our strong third quarter earnings performance reflects continuing benefits from programs to introduce new and innovative products, enhance customer service, and increase productivity. The results are even more impressive given the turbulent economic conditions which prevail in the residential home market and new store construction for certain retail channels. We believe weak demand in these two areas reduced our growth in net sales by approximately four percentage points.”
The results for both periods exclude the specialty chemicals business, which was spun off to the shareholders of Acuity Brands on October 31, 2007 as Zep Inc. The historical results of the specialty chemicals business are now reported in discontinued operations of the Company.
The year-over-year increase in net sales reflects more favorable pricing and an enhanced mix of products sold, highlighted by greater shipments of the Company’s proprietary energy-efficient fixtures for new construction and the relighting of existing non-residential buildings. Net sales from the prior year’s acquisition of Mark Architectural Lighting and favorable foreign currency translation of international sales each contributed approximately one percentage point to the year-over-year growth in net sales. The Company estimates that total net sales growth was negatively impacted by four percentage points in the current quarter versus the year ago period as a result of lower shipment volumes for residential related fixtures and for new store construction in certain retail channels. Additionally, the Company estimates that year-over-year net sales growth in other segments of the non-residential market approximated 4 percent and was due primarily from pricing actions and an enhanced mix of products sold, while unit volumes were essentially flat.
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