Columbus McKinnon (CMCO) Tops Q1 EPS by 14c

Columbus McKinnon (NASDAQ: CMCO) reported Q1 EPS of $0.74, $0.14 better than the analyst estimate of $0.60. Revenue for the quarter came in at $225 million versus the consensus estimate of $219.22 million.

Mark Morelli, President and CEO of Columbus McKinnon, commented, “We delivered another strong quarter which we believe demonstrates that we are on the right path with our Blueprint 2021 strategy. We are successfully driving margin expansion and improving earnings power. We are still in the early stages of Phase II of our strategy, and we are encouraged that the enhancements we are making will be sustainable throughout economic cycles.”

He added, “In line with our strategy to simplify our business, we have initiated the divestiture of three businesses. This includes our Tire Shredder business, our crane builder business, Crane Equipment and Service Inc., and Stahlhammer Bommern GmbH, which was acquired in 2014.” The Company recorded a held for sale impairment charge of $11.1 million as it considers strategic alternatives for these businesses. These businesses contributed approximately $38 million of sales and $1 million of operating income in Fiscal 2018.

Mr. Morelli concluded, “Markets remain strong and our bidding pipeline is robust. In fact, project orders are being pushed out as customers address schedules and staffing challenges. We are also advancing our Phase II efforts to focus on profitable revenue. As a result, we plan to shed an estimated 1% of revenue in the second quarter that will provide gross margin expansion. Given our focus on quality revenue and the timing of projects, we believe second quarter revenue will grow about 2% to 3%. And, while research, selling, and general and administrative expenses are expected to be approximately $48 to $49 million in the quarter, we believe the impact of our Phase II efforts will drive year-over-year margin expansion.”

For earnings history and earnings-related data on Columbus McKinnon (CMCO) click here.

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