US lifting equipment manufacturer Columbus McKinnon has reported financial results for the third quarter and first nine months of fiscal 2001 which ended on 31 December 2000. They were in line with expectations announced in December and net income for the nine month period was 14.5% up on the previous year’s figure.
But there is no news yet of the Company’s ongoing ‘evaluation of strategic alternatives’ that is being conducted by financial advisor Bear, Stearns.
President and chief executive officer Timothy Tevens said of the company’s performance: “Despite current general market conditions, our results for the quarter are within the range that we announced last month and results for the nine months represent a significant improvement over the same period of last year.” Third quarter consolidated net sales were $175.1m, compared to $174.2m a year ago. Income from operations was $13.7m for the third quarter, compared with $16.2m last year. Net income for the third quarter of fiscal 2001 was $1.3m, compared with $3.3m a year ago.
“This quarter’s results reflect a shift in our sales mix with higher volumes in our lower margin Solutions – Automotive segment and lower volumes in our more profitable Products segment,” said Tevens. “The decline in sales in our Products and Solutions – Industrial segments is due to the current general economic conditions that broadly impacted capital spending and reduced demand for industrial products. Sales for our Solutions – Automotive segment were up nearly 32% for the quarter, although gross profit margins narrowed for both Solutions segments due to greater competitive pressures.” Consolidated net sales for the first nine months of fiscal 2001 were $552.5m, an increase of $14.7m or 2.7% over the comparable period a year ago. Net income for the first nine months of fiscal 2001 was $11.6m, an increase of 14.5% on the $10.2m made in the comparable period of fiscal 2000.
Commenting on expected fourth quarter results, Tevens said: “Our fourth quarter is typically a strong one for our Products segment, so we expect a significant improvement in our financial results over the third quarter. However, as previously announced, due to general economic conditions, we anticipate fourth quarter diluted earnings per share will be 25% to 35% below last year’s $0.49 and that earnings per share for this fiscal year will range between $1.13 and $1.18 per diluted share, compared with last year’s $1.20 per diluted share.” Tevens concluded: “We expect a near-term continuation of current economic conditions, and look for some improvement if interest rates decline further which would have a favorable effect on our interest costs and customer capital expenditures and general industrial spending. We also continue to have a solid project backlog in both Solutions segments and remain focused on making further productivity improvements in our operations. With our fundamentally strong core business, leading market share in key product lines and reputation for quality products, we are positioned to resume revenue and income growth when the current economic cycle changes.”
