Highlights included; 42% revenue growth driven by strong volume, contribution of acquisition and strategic pricing; CMBS enables continued margin expansion resulting in record gross margin of 36.3%, up 80 basis points; record adjusted gross margin of 36.7% expanded 230 basis points and strategic pricing, which more than offset material cost inflation pressure.
“Demand for our products remains strong as we execute our Blueprint for Growth 2.0 strategy. Our team has worked tirelessly to address supply chain challenges with agility and has overcome the impacts of rapid inflation with additional price increases," said David Wilson, president/CEO, CMCO.
"We believe the Columbus McKinnon Business System (“CMBS”), which provides the framework to scale the organization, is becoming more robust and enabling improved results.
"Also of note, the Dorner acquisition has provided a foundation to evolve our business model into higher growth, less cyclical industries as we continue to expand in the Life Sciences, E-Commerce and Consumer Packaging markets. We expect to leverage this platform to further transform our Company into a high value, intelligent motion enterprise.”
For the quarter, sales increased $65.8m, or 41.7%. The Dorner acquisition added $33.5m in sales. In the US volume improved $16.7m, or 19.7%, and price improved $2.0m, or 2.4%.
US sales related to the acquisition were $27.3m. Outside the US volume improved $9.7m, or 13.3%, and price improved $2.0m, or 2.7%. The Dorner acquisition added $6.3m of sales outside the US Foreign currency translation was favorable $1.9m, or 1.2% of total sales.
Columbus McKinnon expects third quarter fiscal 2022 sales of approximately $215m at current exchange rates. This outlook includes the expectation that supply chain constraints continue and reflects typical seasonality, given holidays and fewer shipping days.