ICS Magazine

Tennant 2nd-quarter profit slips on charges

July 31, 2008

MINNEAPOLIS (AP) -- Tennant Co., which makes floor-cleaning equipment, said on Tuesday second-quarter profit declined to miss Wall Street expectations because of a weak economy and hefty charges in the most recent quarter.

Profit declined 21 percent to $8.3 million, or 44 cents per share, from $10.5 million, or 55 cents per share, a year earlier.

Results in the most recent quarter were lowered by 10 cents per share. Specifically, the company recorded 6 cents per share in legal settlement expenses, 2 cents per share for curtailed acquisition initiatives and a tax reserve for 3 cents per share.

The company also recorded a gain of a penny per share from divesting certain assets.

Revenue rose 17 percent to $193.6 million from $165.2 million last year, on gains from acquisitions, growth in emerging markets, price increases and new product sales.

Analysts polled by Thomson Financial predicted a profit of 60 cents per share on revenue of $185.8 million.

President and Chief Executive Chris Killingstad said earnings came in below company expectations. "Unusual items, coupled with continued economic softness in North America, depressed our earnings in the quarter," Killingstad said in a statement.