Columbus McKinnon Corporation has turned a first quarter loss into profit this time around. For the three months to 30 June 2002 CM made a net profit of $3.5m on continuing operations, compared with a $2.8m loss in last year’s first quarter.
Operating income increased 94% to $9.5m.
Fiscal 2003 first quarter consolidated net sales from continuing operations were $113.9m, compared with $129.1m a year ago.
‘Our results for the quarter reflect continued difficult market conditions for manufacturers of industrial products, partly mitigated by our initiatives to reduce the company’s cost structure and level of debt,’ said president and CEO Timothy Tevens.
‘Despite the reduction in sales over the last year, we continue to maintain our leading market share in key product lines. Also, our margins have held up reasonably well.’
Tevens continued: ‘While we do not expect demand for our products to recover significantly until industrial spending increases in the United States, the decline in Columbus McKinnon’s sales appears to have stabilised as fiscal 2003 first quarter sales from continuing operations were within 1% of fiscal 2002 fourth quarter sales.’
He added: ‘We remain focused on debt reduction and during this quarter we reduced debt by $21.9m, with $4.3m coming from operating funds and the remainder from the proceeds of the sale of the ASI business.’
