Poor trading conditions were blamed for the drop in Columbus McKinnon corporation’s net income for the three months to 2 January which fell by almost 50% to $3.3m compared with the same period last year ($6.4m). Net sales were $174m, down from $187m in the same period of the previous year.
President and chief executive Timothy Tevens said that the results were in line with expectations. Taking a positive approach, Tevens said the company’s products division, the largest contributor to company revenues, was having a good year despite poor trading conditions.
“In spite of continued softness in several industrial markets served by CM’s product segment, including oil and gas, pulp and paper, and crane builders, year to date sales, operating income before amortisation and margins in our products segment are running ahead of fiscal 1999. Recent order activity appears to be increasing, a positive indicator for the full year contribution,” he said.
In January CM announced it had appointed advisors Bear Stearns to determine its options, including preparing the company for a possible sale or merger.
