Based on its first half 2013 results and remainder of year performance expectations, Tennant Company estimates its 2013 full year net sales will be in the range of US$750 to US$770 million, compared with 2012’s US$739 million.
As detailed in its recently released second quarter financial results, the company’s 2013 annual financial outlook sees modest economic improvement in North America, continued uncertainty in Europe and steady growth in emerging markets.
Tennant is planning an unfavourable foreign currency impact on sales for the full year in the range of 0 to 1 percent while gross margin performance in the range of 43 to 44 percent is predicted.
Research and development expenses will be about 4 percent of sales, predicated on the company’s continued investment in its core products and in water-based cleaning technologies.
“We are pleased with our current momentum and prospects for the rest of the year. We continue to expect 2013 sales to be stronger in the back half of the year, as new product sales accelerate and growth continues in Tennant’s global strategic accounts and our overall Americas business,” stated chief executive officer Chris Killingstad.
Second quarter (to June 30) 2013 net sales of US$200.2 million compared with the same 2012 quarter’s US$199.5 million. First half net earnings were US$19.3 million on sales of US$368.3 million, compared with 2012’s US$19 million on US$373.2 million.
Killingstad observed, “We are pleased to report a very solid 2013 second quarter, with increased sales and earnings versus the prior year. Strong demand for new products and continuing momentum in global strategic accounts contributed to higher sales.
“We were encouraged to see total organic sales rise about 1 percent following three consecutive quarters of approximately 2 percent negative organic sales growth. In addition, we continued to achieve further efficiencies in our cost structure which we anticipate will lead to higher profitability in the future.”
Contributing to Tennant’s 2013 second quarter results were sales to strategic accounts, sales in the Americas of scrubbers equipped with Tennant’s ec-H2O technology and strong shipments of newly introduced products. Of note, Tennant saw high demand for the T12 rider scrubber, which is the first new product in Tennant’s redesigned modular large equipment portfolio.
‘Sales in the Asia Pacific region (APAC) increased 2.0 percent, growing about 5.5 percent organically, excluding an unfavourable foreign currency exchange impact of about 3.5 percent. Organic sales growth resumed in the APAC region due mainly to strong sales performance in Australia,’ noted the company.