Columbus McKinnon Reports Growth for Fiscal First Quarter 2008
July 25, 2007 • Columbus McKinnon Corporation,
Performance in the company's products segment, representing 92.3 percent of total revenue, included sales growth of 6.7 percent, and operating margin expansion of 70 basis points, more than offsetting declines in sales and profits in its solutions segment. Products segment sales increased $8.6 million with significant contributions reported by both domestic and European hoist operations, while solutions segment revenue was intentionally held back to facilitate the transition of the business model for its Univeyor business from engineered-to-order projects to a more “standard” products-oriented offering.
“We continue to achieve robust performance from our products segment as it experiences strong demand for material handling products around the world, successfully penetrates new markets and benefits from continuous improvement in productivity, leveraging the higher volume,” said Timothy Tevens, president and CEO. “The positive effect of operating leverage from our products segment, combined with lower interest expense, is enabling us to continue increasing Columbus McKinnon's profitability even while we restructure our solutions business for improved performance. Consolidated operating leverage rose to 34 percent in the quarter, continuing a strong trend of generating significant additional profit on increased sales.”
Net income for the fiscal 2008 first quarter was $9.5 million compared with fiscal 2007 first quarter net income of $5.6 million. On a per diluted share basis, first quarter fiscal 2008 net income was $0.50 compared with $0.29 in the same period last year. In last year's first quarter, the company recorded net after-tax charges of $3 million, or $0.16 per diluted share, in financing costs associated with the repurchase of $38.5 million of 10 percent notes.
Tevens said the company continues to invest resources in Europe, Asia, and
