Columbus McKinnon reports record sales
Columbus McKinnon Corp., a designer, manufacturer, and marketer of intelligent motion solutions for material handling, said today its growth strategy drove record sales of $258.4 million for its fiscal Q2 2024, up 12% over same period in the prior year. Results for the quarter ending September 30 include the addition of montratec, which was acquired on May 31.
Other highlights include:
- CMBS enables record gross margin of 38.7%; 190 basis point margin expansion sequentially
- Record operating income of $33.4 million, up 22% over prior year
- Expanded financial flexibility while reducing debt; paid down $15 million in debt and increasing debt pay down plans by $10 million to $50 million in fiscal 2024
- Expect to surpass $1 billion in revenue in fiscal 2024; advancing toward fiscal 2027 targets
President and CEO David J. Wilson said, “Our second quarter results reflect the meaningful progress we are making as our team executes toward our fiscal 2027 targets. We achieved several new milestones this quarter including record revenue, gross margin and operating income. Being customer led is a foundational component of the Columbus McKinnon Business System (“CMBS”) which drives continuous improvement, discipline, communication and accountability. We remain laser focused on improving our customers’ experience and our progress has been validated by recent improvements in our net promoter score. The 80/20 process is another key focus area of CMBS with our current priority being product line simplification. Beyond optimizing financial performance, this will lead to improved product offerings, stronger market positioning and the ability to simplify our factory footprint.
“We are clearly building momentum within the organization and expect to surpass $1 billion in revenue in fiscal 2024, Wilson added. "We also expect to deliver approximately 150 basis points of year-over-year gross margin expansion, exceeding our previous guidance. We are excited about the prospects for our precision conveyance platform including the recent addition of the montratec business. This, in combination with our organic growth initiatives, is driving the transformation of Columbus McKinnon to a less cyclical, higher growth and more profitable enterprise.”
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