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TENNANT COMPANY ANNOUNCES POOR INTERNATIONAL ECONOMY, PRODUCT UPDATE AND EXPANSION EFFORTS WILL NEGATIVELY AFFECT FIRST QUARTER RESULTS

 MINNEAPOLIS, March 29 /PRNewswire/ -- Tennant Company (NASDAQ: TANT) CEO Roger L. Hale, today announced that earnings for the first quarter ending March 31, 1993, will be down significantly from $2.5 million, or 50 cents per share originally reported for the same period last year.
 "When we announced 1992 full-year results, I indicated 1993 first- half earnings would be under pressure due to poor international economic conditions and increased investments in Tennant's growth," said Hale. "It now appears that first quarter international sales will be down more than we expected. In addition, domestic sales were somewhat weaker than expected through February, especially floor coatings which may have been affected by the operational changes we are making in the contract application area.
 "Margins are being affected by a generally stronger dollar and currency turmoil in Europe, and by costs related to the update and expansion of our industrial equipment line. During the past six months, we have introduced replacements for our medium and large sweeper models, and, in Europe, a new sweeper designed for outdoor use. We anticipate getting the new-products transition substantially behind us within the next six months. On the positive side, the new products are being very well received by customers."
 "The economic situation in Europe and Japan appears rather bleak at this time, and we are feeling the effects. Domestically, incoming orders are firming after a relatively weak start to the year. While we are taking company-wide actions to reduce expenses, earnings will likely continue under some pressure, at least through the second quarter. If international conditions begin to improve by mid-year and the North American economy continues to gain momentum, we would expect to see a strong finish to the year. However, an increase in full-year earnings from 1992s earnings before extraordinary gain and cumulative effect of accounting change of $13.2 million, or $2.68 per share, appears unlikely due to last year's unusually low effective income tax rate," Hale concluded.
 Company Profile
 Tennant is a world leading manufacturer of floor maintenance equipment. Products include industrial and commercial floor scrubbers, sweepers, buffers and polishers, other specialized floor cleaning equipment, and a line of industrial floor coatings. Tennant's business currently is concentrated in industrial floor maintenance equipment, where the company has a leading market share in North America and most international areas. Tennant's stock is trading on NASDAQ under the symbol TANT.
 -0- 3/29/93
 /CONTACT: Richard Snyder, treasurer of Tennant, 612-540-1208/
 (TANT)


CO: Tennant Company ST: Minnesota IN: SU: ERN

TS-PS -- NY018 -- 0324 03/29/93 08:15 EST
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Publication:PR Newswire
Date:Mar 29, 1993
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