Business
Columbus McKinnon Operating Income Increased 32% on 7% Sales Growth in Third Quarter Fiscal Year 2023
BUFFALO, N.Y.--(BUSINESS WIRE)-- Columbus McKinnon Corporation (Nasdaq: CMCO), a leading designer, manufacturer and marketer of intelligent motion solutions
About this update from Columbus Mckinnon Corporation
[{"type":"text","content":" BUFFALO, N.Y.--(BUSINESS WIRE)--\nColumbus McKinnon Corporation (Nasdaq: CMCO), a leading designer, manufacturer and marketer of intelligent motion solutions for material handling, today announced financial results for its fiscal year 2023 third quarter, which ended December 31, 2022. Results include the addition of Garvey Corporation, which was acquired on December 1, 2021.\n\nThird Quarter Highlights (compared with prior year period)\n\n\nSales were up 7% to $230.4 million driven by improved volume and pricing; up 11% on a constant currency basis\n\n\nOperating income increased 32% to $20.2 million on expanded gross margin and operating leverage driven by price, strong acquisition performance and higher volume\n\n\nSolid operating performance drove net income growth of 22% to $12.0 million, or $0.42 per diluted share; adjusted EPS for the quarter was $0.72\n\n\nDaily order rate up 3% sequentially to $215.0 million compared with the second quarter\n\n\nBacklog of $329.1 million reflects 28% reduction in past due orders in quarter\n\n\nPaid down $30.4 million in debt year-to-date; reduced net debt leverage ratio to 2.7x\n\n\nDavid J. Wilson, President and CEO, commented, “We achieved solid sales growth as our team took steps to improve our customers’ experience through reductions in past due backlog and improvements in lead times. We were also very pleased with sales and orders in Europe, which have held up well under our new leadership structure. Encouragingly, operating income grew by 32% on 7% higher sales. Importantly, we further reduced debt by $10 million in the quarter in line with our current capital allocation priorities as we continue to strengthen our balance sheet.”\n\nHe added, “We are transforming Columbus McKinnon into a leading motion control enterprise for material handling. Our strategy pursues expansion in secular growth markets while leveraging the broader benefits associated with the megatrends of supply chain automation, industrial productivity and regionalization. We are expanding our technology offerings and market reach through innovation while continually exploring opportunities to selectively acquire new capabilities. We expect the Columbus McKinnon Business System to provide the discipline and processes to execute our plan. We believe our actions are improving the business and we remain optimistic re...