CM net income up 500%

2 August 2004

Further evidence of the strengthening US economy comes from Columbus McKinnon’s second-quarter 2004 results. Net sales was $121.7m, up $15m, or 14%, over the same period last year. Net income was $3.4m compared with $0.5m a year ago, an improvement of 574%.
The growth occurred in the ‘core products’ section, which includes hoists, chain, forged attachments and cranes. Core products had a gross profit margin of 27%. Funded debt at the end of the quarter was $281.5m. CM calls the quarter its first quarter for fiscal 2005.
“Looking forward, the combination of a recovering industrial economy, new product introductions and geographic expansion, a lower cost structure and a more favorable tax situation are positive trends for Columbus McKinnon,’ said president and chief executive officer Timothy Tevins. “These are offset by some negative global and domestic trends, including continued steel price increases, rising interest rates and uncertainty in end-user markets around the globe. On the whole, we are encouraged, remaining cautiously optimistic for the future.”
CraneMart International, Columbus McKinnon’s North American dealer network, has launched a computer-based crane maintenance management programme.
The Tech Link Total Care maintenance program uses computerised record keeping methods to collect uniform and detailed inspection data on every crane or hoist, regardless of the equipment’s location or the inspector collecting the data. It then maintains comprehensive and consistent databases on every crane and hoist in the program, which can be accessed and updated from any location. This data is then used to manage the cranes. The network claims the system can lead to longer equipment life, fewer replacement costs, and lower overall costs for maintenance and repairs.