HVAC producer AAON, Inc. said net sales increased 11% to $64.9 million in the third quarter period ended September 30, 2010, up from $58.5 million in the third quarter of 2009. Net income decreased 32% to $5.2 million from $7.7 million in the third quarter of 2009.
Net sales for the first nine months of 2010 decreased 6% to $178.7 million from $191.1 million in 2009, and net income decreased 25% to $16.1 million from $21.6 million.
"We are very proud to have increased net sales in the third quarter, in a severely contracted and very difficult market, by greatly increasing our market share; however, understandably this market, caused by the present poor economic conditions, has put substantial pressure on our margins, exacerbated by cost increases led by commodity prices," explained Norman H. Asbjornson, president and CEO.
Asbjornson said the company continues invest in equipment and facilities and introduce new products, positioning the company to benefit from an industry upturn.
"Significantly, our increased market penetration has produced a 47% rise in our backlog from $38.8 million at September 30, 2009, to $56.9 million at September 30, 2010," he said.
AAON is a Tulsa, OK-based manufacturer of semi-custom and custom heating and cooling products, including air handlers, condensing units, chillers, rooftop units, and boilers.
AAON was one of four appliance-industry companies named to the recent Forbes magazine list of the Best Small Companies in America. AAON ranked No. 77 on the list. (To qualify for the Best Small Companies in America list candidates must be publicly traded for at least one year, generate annual revenue between $5 million and $1 billion, and have a stock price no lower than $5 per share. The rankings are based on earnings growth, sales growth, and return on equity in the past 12 months and over five years. Each company's stock performance compared with that of its peers was also factored in to compile the rankings.)
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