Changes in the company pension program and the acquisition of a competitive rival led to lower-than-expected profits at Badger Meter Inc., according to a report in the Milwaukee Journal Sentinel.
The Milwaukee-based water-meter manufacturer said its fourth quarter net income dropped to $1.19 million, or 8 cents per share, from the $6.26 million, or 42 cents per share, from the same quarter last year.
Analysts had expected a quarterly gain of 28 cents per share, but with the pension change, the $57 million acquisition of Racine Federated, and a 6.4% drop in sales to $60.84 million, the company fell well below those expectations.
Due in part to the sales decline, which was attributed to lower spending for household water meters and municipal budget pressures, CEO Rich Meeusen acknowledged that even without the pension change and the acquisition, Badger Meter would have reported a gain of 15 cents per share.
