US lifting equipment manufacturer Columbus McKinnon Corporation has reported a 5.7% fall in sales for the third quarter of fiscal 2003. In the three months to 29 December 2002 it had consolidated net sales from continuing operations of $107.4m.

Its net loss for the third quarter of fiscal 2003 was $2.5m, compared with a net loss of $100,000 in the fiscal 2002 third quarter.

Net sales from continuing operations for the first nine months of fiscal 2003 were $334.5m, compared with $365.6m in the same period last year, a decrease of 8.5%. Net loss for the first nine months of fiscal 2003 was $6.0m, compared with a net loss of $6.1m for the first nine months of fiscal 2002.

“We continue to contend with lower than normal market demand for industrial products and that is reflected in our sales volumes and financial results for the quarter,” said Timothy Tevens, president and chief executive officer. “In addition, the third quarter is typically our lowest volume quarter. Based upon historical sales patterns and December order activity, we expect improvement in the fourth quarter. Despite lower volumes, we are maintaining market share in key product lines and margins have held up fairly well due to our productivity and cost control initiatives. Given the prolonged weakness in industrial markets, we are taking further actions to reduce costs and to accelerate debt reduction, which include additional facility rationalisations, personnel reductions, and evaluation of the possible sale of some operations.” Tevens continued: “During the third quarter, we announced the consolidation of our chainmaking manufacturing operations, which is reflected in this quarter’s restructuring charge, expected to result in $2.1m in annual pretax cost savings. We have recently decided to close our Reform, Alabama Durbin-Durco plant, our smallest forge group operation, and are consolidating its manufacturing and warehouse operations into our plants in Lexington and Chattanooga, Tennessee, which should result in annual pretax savings of $0.5m.

“The refinancing of our credit facility, which was due to mature in March 2003, increases our financial flexibility and gives us the time needed to complete our strategic initiatives. These initiatives, which include facility rationalisations and lean manufacturing activities companywide, will enable us to make further reductions in our cost structure and to accelerate debt repayment,” Tevens said. “We expect to complete these initiatives over the next few years and, combined with the new products we are developing to facilitate our expansion into new international markets, we believe that we have in place a sound strategy to maintain our strong competitive position, reduce debt, and improve our financial performance as industrial market conditions recover.”