For the quarter, net sales were $144.2million, up 7.1% from last year’s second quarter. Gross margin improved 100 basis points to 27.1% compared with 26.1% in the second quarter of fiscal 2006 and operating income improved to $16.1m for the fiscal 2007 second quarter, up $2.8m, or 21.4%. As a percentage of sales, operating income produced an 11.2% margin in the fiscal 2007 quarter compared with 9.8% in the same period last year.
Timothy Tevens, president and chief executive officer, said: “Columbus McKinnon continues to achieve meaningful improvement in our operating profitability driven by an ongoing focus on productivity enhancements, favorable operating leverage, strong order volume around the world and a significant reduction in debt.”
He added: “Our outlook remains positive as we have and will continue to introduce varying capacities of our new international-rated wire rope hoist line and other new products.”
Net income for the fiscal 2007 second quarter was $8.3m, up $5.0m or 155% over net income of $3.3m in the same quarter last year. Net income per share for the fiscal 2007 second quarter was $0.44 on 18.9m average diluted shares with a 110% increase from $0.21 on 15.4m average diluted shares in the same period last year.
Net income for the second quarter of fiscal 2006 included the negative impact of $3.3m associated with refinancing subordinated debt. Excluding those charges from the 2006 second quarter, adjusting for a consistent tax rate, and using the same number of average diluted shares outstanding as the fiscal 2007 second quarter, results in pro forma net income for the fiscal 2006 second quarter of $5.3m, or $0.28 per share.
This comparison results in growth of pro forma net income and net income per share of 57% in the fiscal 2007 second quarter.
Tevens added: “Bookings for the second quarter and first half were up 9% over last year, which also had strong bookings growth. As capacity utilisation around the world remains strong so have our bookings and corresponding revenues. Accordingly, the present economic climate would indicate an expectation that our business should continue to show favorable growth.”
