Tennant Company Q1 Profit Matches Estimates; Maintains 2014 Guidance

(RTTNews) - Tennant Company (TNC) reported net earnings of $5.8 million, or $0.31 per share, for the first quarter ended March 31, 2014, compared to $5.1 million, or $0.27 per share, previous year.

On average, four analysts polled by Thomson Reuters expected the company to report profit per share of $0.31 for the quarter. Analysts' estimates typically exclude special items.

Net sales rose to $184.0 million from $168.1 million; an increase of 9.5 percent. Analysts expected revenue of $173.87 million for the quarter. The company said, unfavorable foreign currency exchange reduced consolidated net sales by approximately 1 percent. Organic net sales, which exclude the impact of foreign currency exchange (and acquisitions), increased approximately 10.5 percent.

The company said, contributing to its 2014 first quarter results was continued demand for newly introduced products, especially the T12 rider scrubber, as well as strong sales of industrial equipment and sales through distribution and to strategic accounts. Sales of scrubbers equipped with ec-H2O technology grew 11.7 percent.

Tennant Company continues to estimate 2014 full year net sales in the range of $780 million to $800 million, up 4 percent to 6 percent, and earnings in the range of $2.50 to $2.80 per share, an increase of 11 percent to 24 percent, compared to 2013, as adjusted. Analysts expect the company to report fiscal 2014 profit per share of $2.62 on revenue of $788.43 million.

The company anticipates that its 2014 earnings will be stronger in the second half of the year, as its growth investments gain further traction and generate incremental revenues and profits.

Chris Killingstad, Tennant CEO said: "We are pleased to report record revenues for a first quarter and double-digit organic growth, with higher sales across all of our geographies. The implementation of our growth strategy is off to a strong start in 2014, as we strive to reach $1 billion in revenues by 2017. All of our key drivers to reach this target performed well in the first quarter, and we anticipate continued sales gains and improved profitability as the year progresses."