Tennant Company (NYSE: TNC), a world leader in designing, manufacturing and marketing of solutions that help create a cleaner, safer, healthier world, today reported net earnings of $13.7 million, or $0.71 per diluted share, on net sales of $199.5 million for the second quarter ended June 30, 2012. In the prior year quarter, Tennant reported net earnings including special charges of $5.9 million, or $0.30 per diluted share, on net sales of $201.3 million; the special charges totaled $5.0 million after tax, or a $0.26 loss per diluted share. Excluding these special charges, adjusted second quarter 2011 net earnings totaled $10.9 million, or $0.56 per diluted share.
Commented Chris Killingstad, Tennant Company's president and chief executive officer: “We are pleased to report a solid second quarter, with record operating profit resulting in very strong operating profit margins and higher earnings. Our strategies to innovate in our core business and with new water-based technologies while lowering Tennant’s cost structure to enhance profitability are working. Although sales growth was constrained by global economic headwinds, organic sales rose about 3 percent, driven by an organic sales increase of approximately 7 percent in our largest geography, the Americas.”
Second Quarter Operating Review
The company's 2012 second quarter consolidated net sales of $199.5 million were down 0.9 percent compared to the prior year quarter. Unfavorable foreign currency exchange reduced consolidated net sales by approximately 3.5 percent. Organic net sales, which exclude the impact of foreign currency exchange (and acquisitions when applicable), increased approximately 2.6 percent. This compares to record 2011 second quarter net sales which grew 21 percent, or approximately 15.6 percent organically.
Contributing to 2012 second quarter results were sales to strategic accounts, as well as sales of two of Tennant’s environmentally friendly offerings: industrial rider scrubbers equipped with ec-H2O
electrically activated water technology and the lithium-ion battery powered Green Machines
500ze city cleaning sweepers. Tennant’s ec-H2O technology converts water into an innovative cleaning solution that cleans effectively, saves money, improves safety and reduces environmental impact compared to daily cleaning floor chemicals. The Green Machines 500ze city cleaning sweepers offer zero carbon emissions, with reduced noise levels to quietly sweep anywhere at any time.
Commented Killingstad: “Tennant remains committed to being an industry innovation leader and aims to set the standard for sustainable cleaning around the world. These two products illustrate that we’re making progress toward that goal.”