Strategically, this growth is expected to occur through a combination of organic increases and selective acquisitions, with acquisitions expected to add approximately $100-$200m in sales. With an emphasis on innovation, Columbus McKinnon plans for new products to contribute 20% to total sales in the long term.
Tevens said: “Our vision is to be the material handling leader in the world for products which productively and safely lift, move, position and secure material. We believe that we can continue to expand our global market share through innovation in product development and marketing, while maintaining strong profit margins and applying lean manufacturing processes.”
He added: “Achieving our goals is also dependent on finding and acquiring at the right price bolt-on businesses that expand or deepen our reach into targeted geographic or industrial markets or enhance our product offering.”
Columbus McKinnon strategically targets companies globally with sales under $50m and that will be synergistic and generally accretive to earnings in the first year.
CM recently announced 9.3% growth in revenue and 8.3% expansion in earnings per diluted share for its third quarter fiscal 2008 which ended December 30 2007. On a trailing 12 month basis, the company’s current revenue is approximately $612m, comprised of 66% domestic and 34% international sales.
