Columbus McKinnon’s revenue up 10.9%

30 January 2012

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Columbus McKinnon announced steadily increasing revenue in the third quarter of fiscal 2012.  It grew 10.9% to $142.8m up from $128.7m in the third quarter of fiscal 2011.

This marks the fourth consecutive quarter of double digit growth for Columbus McKinnon, it said in its third quarter 2012 earnings call.  Year to date revenue in 2012 was $432.4m compared to $380.1m in 2011.
Columbus McKinnon’s US sales grew 12.5% and international sales kept apace, growing 9.3%.
International sales represented 47.7% of total net sales. With respect to its growing international market, the company said it was gaining a market share and presence in Europe, Latin America and Asia including China. 
Columbus McKinnon’s president and CEO Timothy Tevens detailed levels of growth in its Chinese and Latin American markets. “Our presence in China, albeit small, is moving ahead well, and we are having strong success in Latin America.”
The company pointed to industrial capacity utilization levels as important market indicators.  Its domestic market has steadily recovered from the 2008 financial crisis, with US industrial capacity utilization reaching its highest level of 76.4% in December, while utilization in the Eurozone retreated slightly to 79.7%.  Analysts often point to an 80% industrial capacity utilization rate as the point at which factory owners become most likely to invest in upgrades, including new crane purchases.
The company’s order backlog shows its project-type orders being delivered in the next 1-2 years. The backlog this quarter was worth $110.3m of which $30.5m of project-type backlog was scheduled to ship after March 31, 2012. A year ago it was worth $76.5m.
Tevens said, “We continue to realize double digit order growth globally as the US demonstrates renewed strength, and we take market share in Europe where order growth is strong despite the slowing of those economies.”
Highlighting global financial uncertainty, Tevens said, “We are optimistic about the future although, given the tenuous nature of the global economy and continued uncertainty, our enthusiasm is somewhat tempered.”
Columbus McKinnon will nonetheless pursue a strategy of acquisition and international expansion. “Our strategic focus remains on strengthening earnings power and cash generation, capturing greater market share internationally, developing new products and identifying acquisition opportunities for geographic expansion or product line extensions,” Tevens said.