Good day, ladies and gentlemen, and welcome to the Q1 2018 Badger Meter Earnings Conference Call. (Operator Instructions) It is now my pleasure to hand the conference over to Mr. Rich Meeusen, Chairman, President and Chief Executive Officer. You may begin.
Thank you, Brian. Good morning, everybody, and welcome to Badger Meter's First Quarter Conference Call. Thank you for joining us. Yesterday, after the market closed, we released our first quarter results. We are pleased that sales hit an all-time record for any quarter, helped by our sales of our BEACON enlace platform as well as sales stemming from our acquisitions of D-Flow and Carolina Meter. That said, bottom line results did not meet our expectations, in part due to lower volumes caused by order delays that, while received in the quarter, could not be shipped in time to be recognized. That said, we do remain optimistic about the year ahead. Ken Bockhorst, our COO, will talk about our new product developments and other initiatives that support that confidence.
Moreover, future quarters will see the benefits of the January 1 price increases as they work their way through our order backlog, with some of the first quarter order delays spilling into the second quarter.
So with those brief comments, I'm going to turn the call over to Rick Johnson, our Senior VP and CFO, to go through the numbers. Rick?
Thanks, Rich. As usual, I'll begin by stating that we will make a number of forward-looking statements on our call today. Certain statements contained in this presentation as well as other information provided from time to time by the company or its employees may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in these forward-looking statements. Please see yesterday's earnings release for a list of words or expressions that identify such statements and the associated risk factors.
Let me reiterate some of our guidelines. For competitive reasons, we do not comment on specific product line profitability other than in general terms nor do we disclose components of cost of sales, for example, copper. More importantly, we continue our practice of not providing specific guidance on future earnings. We believe specific guidance does not serve the long-term interest of our shareholders.
Now let's discuss what happened in the first quarter. Sales in the first quarter increased $3.4 million or 3.4% to $105 million compared to $101.6 million during the same period in 2017. Municipal water sales represented 76.7% of sales for this first quarter compared to 77.3% in the first quarter of last year. Municipal water sales increased $2 million or 2.6% to $80.5 million from $78.5 million in the first quarter of last year.
The sales increase was due to higher pricing on products ordered after January 1, higher sales to the Middle East and higher service revenues due to increases of the BEACON managed solution -- solutions, excuse me. These positive impact, however, were somewhat offset by lower volumes of
Chairman, President and Chief Executive Officer
Senior Vice President, Finance, Chief Financial Officer and Treasurer
Senior Vice President and Chief Operating Officer
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