A record fourth quarter helped Columbus McKinnon Corporation avoid a dip in sales for the financial year to 31 March 2000. Net sales of $736.3m for the year was up just 0.1% on the previous year. Fourth quarter sales were up more than 11% to $198.5m. Net income for the year was down, however, from the previous year’s $27.4m to $17.1m.
President and CEO Timothy Tevens said the company was “proceeding with our previously announced initiative to explore all strategic alternatives to maximise shareholder value”.
Said Tevens: “The lower annual earnings performance is due primarily to softer markets during the first three quarters for ASI, the major operating entity of the Solutions – Automotive segment, as well as cost overruns in several of its completed foreign contracts as previously reported.” ASI is the main subsidiary of Lico Inc., the business acquired in 1998 for $155m. It has proved a difficult business for CM but there are signs of improvement.
“Fourth quarter results were CM’s strongest in fiscal 2000 with sales and earnings per share in line with our expectations. Sales rose over 11% in the quarter over the fourth quarter of last year with much of the increase coming from our Solutions – Automotive segment where we are seeing the start of a turnaround. We continue to focus on improving the Solutions – Automotive segment, and the results in this quarter are indicative of those efforts.” Tevens also highlighted the need to reduce the cost of sales, which led to gross profit margins falling from 28% to 25% last year.
He concluded: “The continued strength and market leadership of CM’s Products business, combined with improving results from our Solutions – Automotive business, position CM for improving performance in fiscal 2001.”
