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SARASOTA, Fla. - Helios Technologies, Inc. (NYSE: NYSE:HLIO), known for its specialized motion control and electronic controls technology, has announced the reopening of two of its three Sun Hydraulics manufacturing facilities in Sarasota. This development comes six days after Hurricane Milton, a Category 3 storm, struck the area directly.
Interim President, CEO, and CFO Sean Bagan expressed relief that the team suffered no injuries or fatalities during the hurricane. Despite personal losses, the staff quickly initiated damage assessments and restoration efforts to resume operations. The reopening of these facilities marks a significant step towards supporting their customer base and returning to full production capacity.
Rick Martich, President of Hydraulics, Americas at Helios, commended the local team for their dedication and the support received from the global Helios network during the recovery process. The third facility, which endured more extensive damage, remains closed, and the company is actively working to bring it back online.
Helios Technologies also acknowledged the potential impact of the hurricane on its regional suppliers, freight carriers, and the broader infrastructure. The company plans to release estimates on the financial implications of Hurricane Milton on its fourth-quarter projections in the upcoming third-quarter financial report for 2024.
Helios Technologies, serving various end markets such as construction, material handling, and agriculture, has a presence in over 90 countries. The company's growth strategy focuses on leading niche markets with innovative products and solutions. Helios has consistently paid quarterly cash dividends to shareholders since becoming a public entity in 1997.
This report is based on a press release statement from Helios Technologies.
In other recent news, Helios Technologies is currently assessing the damage caused by Hurricane Milton to its operations, with the aim to resume normal operations as promptly as possible. The company has also reported mixed Q2 2024 financial results, with sales surpassing expectations at $220 million, largely due to the strong performance of the Balboa Water Group. However, a 7% year-over-year sales drop was registered, and sales guidance for the second half of the year has been adjusted due to reduced demand in specific markets.
In recent developments, Helios Technologies has formed a strategic alliance with WaterGuru and is focusing on new markets such as food equipment. The company is also undergoing a CEO transition aimed at bolstering returns and reducing debt further. Despite expecting a 3% sales decline in Q3, Helios anticipates a 6% growth in Q4, marking the first top-line growth in several quarters.
These recent developments provide insights into Helios Technologies' strategic moves to navigate current market conditions and position itself for future growth. It is important to note that all information provided is based on recent developments and the company's announcements.
InvestingPro Insights
As Helios Technologies (NYSE: HLIO) navigates the aftermath of Hurricane Milton, investors may find value in examining the company's financial health and market performance. According to InvestingPro data, Helios boasts a market capitalization of $1.63 billion, reflecting its significant presence in the motion control and electronic controls technology sector.
Despite the recent challenges, Helios has demonstrated resilience in its financial performance. An InvestingPro Tip highlights that the company has maintained dividend payments for 28 consecutive years, underscoring its commitment to shareholder returns even in turbulent times. This consistency aligns with the company's statement about regularly paying quarterly cash dividends since going public in 1997.
Another InvestingPro Tip reveals that Helios' liquid assets exceed its short-term obligations, suggesting a strong financial position that could help the company weather the storm's impact and support its recovery efforts. This liquidity strength is particularly relevant as Helios works to bring its third facility back online and manages potential supply chain disruptions.
Investors should note that Helios has seen a strong return over the last month, with InvestingPro data showing a 19.28% price total return. This positive momentum, coupled with analysts' predictions of profitability for the year, may indicate market confidence in the company's ability to overcome the hurricane's setbacks.
For those seeking a deeper understanding of Helios Technologies' financial outlook, InvestingPro offers 8 additional tips, providing a comprehensive analysis to inform investment decisions.
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