Columbus McKinnon reports 33% operating income growth on 10% net sales growth
Columbus McKinnon Corp., a designer, manufacturer and marketer of intelligent motion solutions for material handling, reported net sales increased 10% to $254.1 million for its third quarter of fiscal 2024 – primarily driven by strength across all product platforms led by precision conveyance. Results include the addition of montratec, which was acquired on May 31, 2023
Third quarter highlights inclulded:
- Orders increased 8% demonstrating continued progress with growth initiatives and included a 23% increase in precision conveyance orders
- Gross margin expanded 130 basis points to 36.9%; Adjusted Gross Margin1 expanded 160 basis points to 37.2%
- Operating income increased 33% to $26.9 million, or 10.6% of net sales; Adjusted Operating Income1 was $29.7 million, or 11.7% of net sales
- Net cash provided by operating activities was $28.6 million in the first nine months of fiscal 2024, up 69% from the prior year period; continued accelerated debt repayment in the quarter
- Completed construction and took occupancy of a state-of-the-art manufacturing center of excellence in Mexico, which will provide significant growth capacity and cost savings over time
“We are pleased with the strong orders, sales, operating income, and cash flow generation we delivered in the quarter," said President and Chief Executive Officer David J. Wilson. "Our team continued to execute commercial and operational initiatives, improving productivity, reducing lead times, and enhancing our customer experience. Our top-line growth translated to expanded operating margin demonstrating the incremental leverage of our business as we continue to drive year-over-year improvements leveraging CMBS and the 80/20 process. We have an encouraging funnel for both short cycle and large projects as we continue to execute on our strategy to become a leader in intelligent motion solutions. Our progress gives us confidence in our near- and long-term financial objectives, which we believe will drive meaningful shareholder value.”
Read more details here.
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