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

 TENNANT COMPANY REPORTS INCREASED SALES AND EARNINGS
 FOR SECOND QUARTER, SIX MONTHS
 MINNEAPOLIS, July 16 /PRNewswire/ -- Tennant Company (NASDAQ: TANT) CEO Roger L. Hale today announced a sales and earnings increase for the second quarter and six months ended June 30, 1992.
 Earnings and Sales Increase
 Net earnings for the second quarter of 1992 were $3.6 million, or 74 cents per share, up 18 percent compared with $3.1 million, or 62 cents per share, at this time last year. The 1992 figures include an extraordinary gain of $0.4 million, or 8 cents per share, relating to a final insurance settlement on a previously reported event in 1988. Earnings before extraordinary gain were $3.3 million, or 66 cents per share, an increase of 5 percent from last year. Net sales of $52.4 million were up 6 percent from the $49.5 million reported for 1991's second quarter.
 For the six-month period ended June 30, 1992, net earnings were $6.1 million, or $1.24 per share, including the second quarter extraordinary gain. Six-month earnings before extraordinary gain were $5.7 million, or $1.16 per share, an increase of 15 percent from last year's $4.9 million, or 99 cents.
 Six-month sales of $101.2 million were up 5 percent from the $96.0 million reported for the same period in 1991. North American sales were up 6 percent on improved economic conditions in industrial markets. Overseas sales increased 4 percent in U.S. dollars (up 8 percent in local currencies) on strength in the European market. A stronger U.S. dollar reduced consolidated six-month sales by $1.1 million.
 Small Profit Increase Due to Product Development, Employee Compensation Plans
 In reviewing year-to-date results, Hale said, "Profit from operations is up only 1 percent on a 5 percent sales increase. This lack of operating leverage is primarily due to two items: product development and introduction expenses, and an increase in employee incentive compensation plan expenses. As a result of our continuing product development efforts, we are introducing a new line of mid-sized industrial sweepers this month; delivery will begin later in the summer. Our incentive plans are designed to share with employees improvements in the company's financial performance and increase in stock value, both of which occurred in 1992.
 1992 Outlook: Stronger Operating Results Expected in Second Half
 Discussing the 1992 full-year outlook, Hale stated, "While we are concerned about recent signs of weakness in the economy, we fully expect to improve on our year-to-date sales and operating profit increases.
 "With the exception of Japan, orders have been showing steady increases since the first of the year and backlogs are up from recession-affected levels. New industrial product introductions should add to this momentum.
 "A stronger operating profit in the second half, combined with the first half's higher other income and lower tax rate, should produce an earnings increase for 1992," 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 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
 (In thousands, except per share data)
 (Unaudited)
 Three Months Ended
 EARNINGS 6/30/92 6/30/91 Pct. Change
 Net sales $52,362 $49,480 6
 Less:
 Cost of sales 29,521 27,506 7
 Selling and administrative 18,578 17,533 6
 Profit from operations 4,263 4,441 (4)
 Other income (expense) 552 514 7
 Earnings before income taxes and
 extraordinary gain 4,815 4,955 (3)
 Taxes on earnings 1,564 1,865 (16)
 Earnings before extraordinary gain 3,251 3,090 5
 Extraordinary gain (net of income
 taxes of $208) 395 -- --
 Net earnings $3,646 $3,090 18
 Percent of net sales 7.0 6.2 --
 PER SHARE
 Earnings before extraordinary gain $.66 $.62 --
 Extraordinary gain .08 -- --
 Net earnings .74 .62 --
 Dividends paid .30 .30 --
 Average number of shares 4,912,200 4,967,600 --
 Six Months Ended
 EARNINGS 6/30/92 6/30/91 Pct. Change
 Net sales $101,165 $95,983 5
 Less:
 Cost of sales 56,661 53,592 6
 Selling and administrative 37,112 35,072 6
 Profit from operations 7,392 7,319 1
 Other income (expense) 1,134 615 84
 Earnings before income taxes and
 extraordinary gain 8,526 7,934 7
 Taxes on earnings 2,824 2,989 (6)
 Earnings before extraordinary gain 5,702 4,945 15
 Extraordinary gain (net of income
 taxes of $208) 395 -- --
 Net earnings $6,097 $4,945 23
 Percent of net sales 6.0 5.2 --
 PER SHARE
 Earnings before extraordinary gain $1.16 $.99 --
 Extraordinary gain .08 -- --
 Net earnings 1.24 .99 --
 Dividends paid .60 .60 --
 Average number of shares 4,912,800 4,973,800 --
 Trailing 12 Months Ended
 EARNINGS 6/30/92 6/30/91 Pct. Change
 Net sales $203,757 $206,259 (1)
 Less:
 Cost of sales 115,216 117,195 (2)
 Selling and administrative 71,747 71,104 1
 Profit from operations 16,794 17,960 (6)
 Other income (expense) 2,319 1,154 101
 Earnings before income taxes and
 extraordinary gain 19,113 19,114 --
 Taxes on earnings 6,364 5,097 25
 Earnings before extraordinary gain 12,749 14,017 (9)
 Extraordinary gain (net of income
 taxes of $208) 395 -- --
 Net earnings $13,144 $14,017 (6)
 Percent of net sales 6.5 6.8 --
 PER SHARE
 Earnings before extraordinary gain $2.59 $2.83 --
 Extraordinary gain .08 -- --
 Net earnings 2.67 2.83 --
 Dividends paid 1.20 1.20 --
 Average number of shares 4,916,000 4,946,800 --
 -0- 7/16/92
 /CONTACT: Richard Snyder of Tennant, 612-540-1208/
 (TANT) CO: Tennant Company ST: Minnesota IN: CST SU: ERN


AL -- MN001 -- 9878 07/16/92 09:01 EDT
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Date:Jul 16, 1992
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