Vowing to bounce back from the pandemic effects of 2020, nVent Electric posted a 42% increase in fourth-quarter net income, boosted by two acquisitions last year.
nVent back on track after pandemic dip
Company managed from St. Louis Park reported a 42% increase in fourth quarter profits.
February 8, 2022 at 6:11PM
The company, which is headquartered in London but managed from St. Louis Park, makes electrical connections and enclosures that connect and protect sensitive and valuable electronics and equipment.
"We executed well on our strategy," said Beth Wozniak, nVent's chief executive officer, in a news release. "We completed two acquisitions, Vynckier and CIS Global, launched 58 new products and continued to accelerate our digital transformation."
For the quarter, nVent earned $67 million, or 39 cents a share; revenue increased 28% to $669 million over the same period a year ago.
Adjusted earnings per share were 50 cents, 2 cents above estimates.
Revenue in 2020 decreased 9.3% and did not top $2 billion, and nVent lost money for the first time since spinning out from Pentair in 2018.
"We had a goal to emerge stronger and our results demonstrate we have," despite the supply chain and inflationary challenges of 2021, Wozniak told analysts on the company's earnings call.
For the year, nVent made $272.9 million; it lost $47.2 million in 2020. Sales increased 23% to $2.5 billion.
The company benefited from the rollout of 5G technology, as well as the trend toward smart electrical grids and building controls and electric vehicles.
The two acquisitions in 2021 — Vynckier Enclosure Systems, a Houston-based maker of non-metallic enclosures, and CIS Global, a Tucson, Ariz., maker of power solutions for data centers and networking industries — add $100 million in annualized sales.
Despite continuing global challenges this year, the company has a strong 2022 outlook. "We believe 2022 will be another strong year for growth and value creation," Wozniak told analysts.
The company predicts adjusted earnings per share of $2.10 to $2.20 for 2022, compared to the $1.96 recorded for 2021. It estimates sales will go up 6-10%.
Shares of nVent closed at $34.60 a share on Tuesday morning, up 17 cents or 0.5%. During the past 52 weeks, shares have ranged between $22.62 and $39.53.
The Birds Eye plant recruited workers without providing all the job details Minnesota law requires.
