Columbus McKinnon reports record gross margin of 37.5% for Q1 2023

First Quarter highlights (compared with prior year period) saw revenue of $220m, up 6.5% on a constant currency basis, a record gross margin of 37.5% as Columbus McKinnon Business System (CMBS) enabled strong execution,  and continued strength in demand with orders up 11% on a constant currency basis driven by 10% growth in North America and 12% growth in EMEA.

 “We had a strong start to the year with our first quarter results. I am proud of how our team executed to deliver growth and record gross margin while improving the business. The realignment of Columbus McKinnon’s structure is enabling cost synergies and improved collaboration across the organization,” said David Wilson, president/CEO, Columbus McKinnon.

“Our new regional leadership structure has created greater cross-functional engagement and is unlocking even more potential to deliver results in the face of current supply chain challenges, labor constraints and high inflation.

“We continue to see strong demand for our intelligent motion solutions across a breadth of markets. We are also well positioned financially to execute our strategy and further transform Columbus McKinnon into a higher growth, less cyclical enterprise with expanded margins.”

For the quarter, sales increased $6.8m, or 3.2%. The acquisition added $8.5m in sales which helped to offset unfavorable foreign currency translation of $7.0 million, or 3.3% of total sales. In the US, volume improved $0.1m, or 0.1%, and price improved $6.4m, or 5.1%. US sales related to the acquisition were $7.8m.

Outside the US, price improvement of $3.2m, or 3.6% helped to offset the $4.4m, or 4.9%, decline in volume. The acquisition added $0.7m of sales outside the U.S.

Columbus McKinnon expects second quarter fiscal 2023 sales of approximately $230m to $240m at current exchange rates, a sequential increase in the mid-to-high single digits.

“We are confident in our ability to deliver our plan as we continue to advance Columbus McKinnon’s transformation. We are executing to meet our commitments and to achieve our goals of $1.5 billion in revenue and 21% adjusted EBITDA margin in fiscal 2027,” added Wilson.