Columbus McKinnon Expects Timing Differences To Impact Quarter
31 August 1998
Columbus McKinnon Corporation Expects Timing Differences To Impact Its Current Quarter
AMHERST, N.Y., Aug. 31 -- Columbus McKinnon Corporation
today announced that, largely due to timing revisions in
revenue recognition for projects in its automotive markets, it expects its
revenue and earnings for the quarter ending September 27, 1998 to be below
current analyst expectations. It also expects that a significant portion of
those timing differences will be recognized during the balance of this
fiscal year.
The Company's revenue for the quarter is running lower than expectations
by 1O% to 15%, while earnings may be below expectations by $.30 to $.35 per
share. For the year, however, the revenue shortfall is expected to be 3% to
5%, and earnings per share are expected to be in the $2.10 to $2.20 range --
as compared with original expectations of about $2.25 per share and well above
the $1.41 per share for last fiscal year.
The timing revisions are related to automobile industry projects by its
newly acquired subsidiary, LICO, Inc., based in Kansas City. Eighty percent
of LICO's business is large material handling projects for automobile assembly
plants -- particularly General Motors and Ford. "As we indicated in our July
release announcing first quarter earnings, project timing in this business can
be hard to predict on a quarter-to-quarter basis. It has, however, been more
predictable over the course of a year, which makes us comfortable in our
assessment of this timing shift," Timothy T. Tevens, President and Chief
Executive Officer said. "The amount of business on the drawing boards of
automobile manufacturers and LICO's excellent supplier position in the
industry augers well for future growth."
"In addition to LICO's timing shifts, we have also experienced some
seasonal market softness in some of our core products to a greater than
expected degree this summer," Tevens said. "In addition to our continuing
focus on cost management activities, we have implemented additional
cost-reduction measures in response to current economic conditions."
"We are managing the Company to enhance its long-term value for our
shareholders. We remain highly confident that all of our recent acquisitions,
including LICO, have helped put Columbus McKinnon in a uniquely advantageous
position for the future. We continue to see significant growth in revenue and
earnings over last year, which underscores the strategic and financial
benefits of the LICO acquisition," Tevens said.
This press release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements include, but are not limited to, statements concerning future
revenue and earnings, involve known and unknown risks, uncertainties and other
factors that could cause the actual results of the Company to differ
materially from the results expressed or implied by such statements, including
general economic and business conditions, conditions affecting the industries
served by the Company and its subsidiaries, conditions affecting the Company's
customers and suppliers, competitor responses to the Company's products and
services, the overall market acceptance of such products and services and
other factors disclosed in the Company's periodic reports filed with the
Securities and Exchange Commission.
Columbus McKinnon Corporation is a broad-line designer, manufacturer and
supplier of technologically advanced material handling products and integrated
material handling systems that are widely distributed to industrial and
consumer markets inside and outside North America. Among its most widely
purchased items are chain and wire rope hoists, high-strength steel chain,
forged accessories, conveyor systems, lift tables and a growing list of other
related material handling products.
Comprehensive information on Columbus McKinnon is available on its Web
site at http://www.cmworks.com/