Tennant First-Quarter Earnings Jump 35 Percent
The company's earnings rose to $3.5 million, or 39 cents per share, from $2.6 million, or 28 cents per share, a year ago.
Sales grew 6 percent to $126 million from $119.1 million on price increases and higher volume across regions. European sales rose 8 percent to $30.8 million and North American sales increased 5 percent to $82.7 million. Tennant said new products contributed to growth in both regions. Favorable currency exchange boosted sales by about 1 percent.
The company said profit was further helped by actions it took last year that led to lower costs in the latest quarter. Tennant's cost of sales grew 1 percent to $72 million.
"First quarter profitability also benefited from a sales mix that included a larger-than-usual percentage of direct sales of cleaning equipment, which have higher gross margins," said Janet M. Dolan, president and chief executive, in a statement.
The company said it expects a less-favorable sales mix in future quarters, but said it still plans to record year-end profit of $1.80 to $2.10 per share.