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TENNANT COMPANY REPORTS INCREASED SALES AND EARNINGS FOR FIRST QUARTER

TENNANT COMPANY REPORTS INCREASED SALES AND EARNINGS FOR FIRST QUARTER
 MINNEAPOLIS, April 16 /PRNewswire/ -- Tennant Company (NASDAQ: TANT) CEO Roger L. Hale today announced that sales and earnings increased for the first quarter ended March 31, 1992.
 Earnings and Sales Establish Record Highs for the First Quarter
 Net earnings for the first quarter were $2.5 million, or 50 cents per share, an increase of 32 percent from last year's $1.9 million, or 37 cents. Net sales of $48.8 million were up 5 percent from the $46.5 million reported for 1991's first quarter. Both sales and earnings established record highs for the first quarter, excluding the effects of an accounting change reported in 1990.
 Sales in North America were up 4 percent on improving economic conditions in industrial markets. Commercial product sales declined somewhat from a strong first quarter last year. Overseas sales increased 8 percent in U.S. dollars (up 11 percent in local currencies) on improvement in European markets. A stronger U.S. dollar for the period decreased consolidated sales by $600,000.
 Profit from operations increased 9 percent on higher sales and improved profitability in the contract floor coatings business. The remainder of the 32 percent increase in net earnings was due to higher other income and a lower effective income tax rate.
 Better Economic Conditions, Improved Floor Coatings Profitability, Affect Quarter
 In discussing first quarter results, Hale said "After experiencing a disappointing finish to last year due to weakening economic conditions, we are pleased by the turnaround that appears to be taking hold this year. Year-to-date orders are running somewhat ahead of expectations, especially in industrial markets in North America and Europe.
 "During the first half of 1991, we incurred expenses related to operational changes in our contract floor coatings business. With these changes behind us, we were able to show an improvement in profitability, which contributed to the company's overall increase in earnings."
 1992 Outlook: Improved Results But Not At First Quarter Pace
 Discussing the 1992 full-year outlook, Hale stated, "The way the year is unfolding leads us to believe Tennant can show consistent increases in quarterly sales and earnings. However, two cautionary notes are in order:
 -- Economic conditions in Germany and Japan have weakened in recent months. These are important markets for Tennant that can have a significant influence on overall results.
 -- Circumstances unique to the early part of 1991 contributed to the strong percentage increase in 1992's first quarter net earnings. These included a relatively high effective tax rate, low other income and a concentration of expense related to the contract floor coatings restructuring. Each of these factors, which combined to produce a weak earnings result for first quarter 1991, showed improvement later in the year.
 "For the longer term, we remain committed to our financial goals as we start a new economic cycle: 5 percent annual growth in real sales and 20 percent return on equity. We are better positioned to achieve these goals at the start of this cycle with a 16 percent return on equity in 1991 versus 9 percent in 1982, and broad-based growth strategies for industrial and commercial floor maintenance products directed at the world market."
 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 maintenance equipment, where the company has a leading market share in North America and most international areas. Tennant's stock is traded on NASDAQ under the symbol "TANT."
 TENNANT COMPANY AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS
 (Unaudited)
 (Dollars in thousands, except per share data)
 EARNINGS Three Months Ended March 31
 1992 1991 Pct. Change
 Net sales $48,803 $46,503 5
 Less:
 Cost of sales 27,140 26,086 4
 Selling and administrative 18,534 17,539 6
 Profit from operations 3,129 2,878 9
 Other (income) (582) (101) 476
 Profit before income taxes 3,711 2,979 25
 Less: Taxes on earnings 1,260 1,124 12
 Net earnings 2,451 1,855 32
 Percent of net sales 5.0 4.0 --
 PER SHARE
 Net earnings $.50 $.37 --
 Dividends paid $.30 $.30 --
 Average number of shares 4,916,000 4,980,000 --
 -0- 4/16/92
 /CONTACT: Richard Snyder of Tennant, 612-540-1208/
 (TANT) CO: Tennant Company ST: Minnesota IN: CST SU: ERN


AL -- MN005 -- 9212 04/16/92 10:57 EDT
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Publication:PR Newswire
Date:Apr 16, 1992
Words:743
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