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TENNANT COMPANY REPORTS INCREASED SALES, EARNINGS DECLINE FOR SECOND QUARTER AND SIX MONTHS

 MINNEAPOLIS, July 19 /PRNewswire/ -- Tennant Company (NASDAQ: TANT) CEO Roger L. Hale today announced results for the second quarter and six months ended June 30, 1993.
 Sales Increase, Earnings Decline
 Net earnings for the 1993 second quarter were $3.1 million, or 62 cents per share, versus $3.5 million, or 72 cents per share, for last year's second quarter. The 1992 figures included an extraordinary gain of $0.4 million, or 8 cents per share. On a comparable basis, 1993 second quarter earnings of $3.1 million, or 62 cents per share, were down 3 percent from last year's earnings before extraordinary gain of $3.2 million, or 64 cents per share. Net sales of $55.1 million were up 5 percent from the $52.4 million reported for 1992's second quarter.
 For the six-month period ended June 30, 1993, net earnings were $3.6 million, or 72 cents per share, versus $1.5 million, or 31 cents per share, for the same period last year. Regarding 1992, in addition to the extraordinary gain of $0.4 million in the second quarter, the company previously restated the first quarter results to reflect a $4.4 million, or 89 cents per share, net charge to earnings for adopting Statement of Financial Accounting Standard No. 106 for post-retirement medical benefits. On a comparable basis, 1993 six-month earnings of $3.6 million, or 72 cents per share, were down 35 percent from last year's earnings before extraordinary gain and cumulative effect of accounting change of $5.5 million, or $1.12 per share.
 Six-month sales of $102.2 million were up 1 percent from the $101.2 million reported for the same period in 1992. North American sales increased 3 percent and overseas sales declined 3 percent. A stronger U.S. dollar reduced consolidated sales by $0.7 million.
 Order Rates Showing Improvement
 Commenting on six-month results, Hale said, "After a weak start to the year, orders strengthened towards the end of first quarter in a number of key areas and this improvement has continued. Our new industrial prot?s continue to be well received and progress is being made in the worldwide expansion of our commercial cleaning equipment business. However, the recession in Europe is having a strong impact on our business there, which is affecting consolidated results."
 Profitability Continues Under Pressure
 "Year-to-date profitability shows the effects of a very poor first quarter," Hale said. "Other than the unexpected sales decline in the first quarter, the same factors affected our second quarter and will likely be with us for a while longer. The primary profitability challenges we are facing include temporarily higher costs to update and expand our industrial equipment line, increased effort directed at expanding penetration of the worldwide commercial equipment market, and a generally weak global economy."
 Discussing the outlook for the remainder of 1993, Hale said, "Actions have been taken to restrain the growth in full-year expenses and we are making progress in terms of improving margins on recently introduced products. We continue to believe that an increase in full- year profit before taxes is possible, assuming that economic growth regains momentum in North America and that conditions in Europe and Japan begin to improve before year-end. However, an increase in after- tax earnings, excluding extraordinary gain and cumulative effect of accounting change, is unlikely due to 1992's unusually low effective tax rate."
 Tennant is a world leading manufacturer of floor maintenance equipment.
 TENNANT COMPANY AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS
 (In thousands, except per share data)
 (Unaudited)
 Three Months Ended Six Months Ended
 6/30/93 6/30/92 Pct. 6/30/93 6/30/92 Pct.
 Change Change
 EARNINGS
 Net sales $55,149 $52,362 5 $102,194 $101,165 1
 Less:
 Cost of sales 31,132 29,579 5 58,526 56,776 3
 Selling and adm.
 expenses 19,704 18,652 6 39,165 37,259 5
 Profit from operations 4,313 4,131 4 4,503 7,130 (37)
 Other income (expense) 399 552 (28) 926 1,134 (18)
 Profit before income
 taxes, extraordinary
 gain and cumulative
 effect of accounting
 change 4,712 4,683 1 5,429 8,264 (34)
 Income tax expense 1,649 1,531 8 1,867 2,759 (32)
 Earnings before extra-
 ordinary gain and
 cumulative effect of
 accounting change 3,063 3,152 (3) 3,562 5,505 (35)
 Extraordinary gain
 (net of income taxes
 of $208) -- 395 -- -- 395 --
 Cumulative effect of
 accounting change
 (net of income taxes
 of $2,558) -- -- -- -- (4,356) --
 Net earnings $3,063 $3,547 (14) $3,562 $1,544 131
 Percent of net sales 5.6 6.8 -- 3.5 1.5 --
 Per Share
 Earnings before extra-
 ordinary gain and
 cumulative effect
 of accounting change $.62 $.64 -- $.72 $1.12 --
 Extraordinary gain -- .08 -- -- .08 --
 Cumulative effect of
 accounting change -- -- -- -- (.89) --
 Net earnings $.62 $.72 -- $.72 $.31 --
 Dividends paid $.32 $.30 -- $.64 $.60 --
 Average number
 of shares 4,918,400 4,912,200 -- 4,924,100 4,912,800 --
 -0- 7/19/93
 /CONTACT: Richard Snyder, treasurer of Tennant Company, 612-540-1208/
 (TANT)


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

KH -- MN017 -- 3136 07/19/93 14:05 EDT
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Publication:PR Newswire
Date:Jul 19, 1993
Words:865
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