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Columbus McKinnon Reports Operating Income Expanded 18% On 7% Increase In Sales In Third Quarter Fiscal 2013

Stocks in this article: CMCO

Columbus McKinnon Corporation (NASDAQ: CMCO), a leading designer, manufacturer and marketer of material handling products, today announced financial results for its fiscal 2013 third quarter, which ended December 31, 2012.

Timothy T. Tevens, President and Chief Executive Officer, commented, “We continue to have solid growth in emerging economies, specifically in China, as our brand strength helps to drive demand. Investments in Asia that require our equipment are also driving demand. U.S. order growth was flat in the third quarter compared with the prior year due to the uncertain economic climate that currently exists.”

Net sales for the third quarter of fiscal 2013 were $153.2 million, up $10.5 million, or 7.3%, from the prior-year period. U.S. sales, which comprised 54% of total sales, increased $4.3 million, or 5.4%, to $83.1 million. End user and channel partner demand, as well as two additional shipping days, were the main drivers of higher U.S. sales this quarter when compared with the prior year. Sales outside of the U.S. were up $6.2 million, or 9.7%, to $70.2 million, reflecting positive growth in emerging economies, the completion of large engineered projects and the additional shipping days. Foreign currency translation had a negative impact of $2.0 million, or 1.4%, on sales during the quarter. Excluding the impact of foreign currency effects, sales outside of the U.S. increased by 12.9%. Acquisitions and divestitures had a negative impact of $2.6 million on sales when compared with the prior-year period. Excluding the effects of foreign currency translation and acquisitions and divestitures, revenue grew by 10.6% in the quarter.

The fluctuation in sales for the third quarter of fiscal 2013 compared with fiscal 2012 is summarized as follows:

($ in millions)        

$

Change

     

%

Change

 
Increased volume 6.4 4.6 %
Additional shipping days 4.9 3.4 %
Pricing 3.8 2.6 %
Acquisitions and divestitures (net) (2.6 ) (1.9 )%
Foreign currency translation   (2.0 ) (1.4 )%
Total $ 10.5   7.3 %
 

Volume and pricing drive margin improvements

Gross profit increased to $43.8 million, or 28.6% of net sales, for the fiscal 2013 third quarter from $38.6 million, or 27.0% of net sales, in fiscal 2012’s third quarter. Improved gross profit was driven by volume and mix of $2.6 million combined with improved pricing of $3.8 million, which more than offset material cost inflation. Foreign currency translation had a $0.6 million unfavorable impact on gross profit.

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