This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Columbus McKinnon Reports Gross Margin Expanded To 31.9% In Fiscal 2014 Second Quarter

Columbus McKinnon Corporation (NASDAQ:CMCO), a leading designer, manufacturer and marketer of material handling products, today announced financial results for its fiscal 2014 second quarter which ended September 30, 2013.

Timothy T. Tevens, President and Chief Executive Officer, commented, “We continue to realize the benefits of our lean manufacturing processes and continuous improvement efforts as demonstrated by the level of gross margin we achieved despite lower sales volume. Our growth in Asia, specifically China, continues to outpace the rest of the geographic markets we serve. We are also making excellent progress on the new facilities we are building to better serve that region. The facilities will enable us to compete in China on a better cost basis and provide more capacity to address this important market.”

Net sales for the second quarter of fiscal 2014 were $138.9 million, down $7.6 million, or 5.2%, from the prior-year period as pricing improvements were more than offset by reductions in volume. Volume declines were mostly driven by reduced levels of investment on major capital projects by end users and the continued poor economy in Europe. The net effect of acquisitions and divestitures offset the impact of foreign currency translation.

U.S. sales, which comprised 57% of total sales, were down by $6.1 million, or 7.1%, to $78.9 million compared with the second quarter of fiscal 2013. Lower volume and the impact of the crane business divestiture in August 2012 more than offset pricing improvements.

Sales outside of the U.S. were down $1.6 million, or 2.5%, to $60.0 million, as growth in emerging markets, improved pricing and the $1.4 million contribution from the June 2013 Austrian acquisition were not sufficient to offset lower volume, primarily in Europe. Foreign currency translation had a positive impact of $0.3 million on sales during the quarter.

The fluctuation in sales for the second quarter of fiscal 2014 compared with the second quarter of fiscal 2013 is summarized as follows:
($ in millions)

$ Change

% Change
Volume (11.1 ) (7.6 ) %
Acquisitions & divestitures (0.3 ) (0.2 ) %
Foreign currency translation 0.3 0.2 %
Pricing   3.5       2.4 %
Total $ (7.6 )     (5.2 ) %

Improved Gross Margin

Gross profit in the second quarter of fiscal 2014 increased to $44.3 million, up $1.9 million from the prior-year period. Improved pricing net of raw material inflation and acquisitions and divestitures had a positive effect on gross profit. This more than offset the negative impact of lower volume and higher product liability costs resulting from a favorable reserve adjustment in the prior-year period. As a percentage of sales, gross margin improved 300 basis points to 31.9% compared with 28.9% for the prior-year period.

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.70 0.75%
FB $102.09 2.60%
GOOG $694.17 2.40%
TSLA $150.01 1.20%
YHOO $27.52 2.60%


Chart of I:DJI
DOW 16,125.97 +111.59 0.70%
S&P 500 1,876.80 +24.59 1.33%
NASDAQ 4,356.3710 +87.6080 2.05%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs