Minneapolis, MN, October 27, 2005--Tennant Co. reported net earnings for the third quarter of $6.3 million, or $0.69 per diluted share. Net earnings in the third quarter of 2004 were $1.0 million, or $0.11 per diluted share.
Analyst expected the company to report per share earnings of $0.44.
Net sales for the quarter were $137.8 million, compared to $120.5 million in the year ago period.
"Our third quarter results clearly demonstrate that our strategies to drive sales growth while improving profitability are enhancing Tennant's overall earnings power," said Janet M. Dolan, Tennant Company's president and chief executive officer. "Our new products and improved global sales and service coverage helped drive double-digit sales growth in all regions in what is historically a seasonally slower period for the company. In addition, with our continued emphasis on operating excellence, we converted more of that sales growth to profit, significantly improving our gross profit margin," Dolan added.
As a result of its strong third quarter results, Tennant for the second time raised its earnings outlook for the full year. Dolan said Tennant now expects earnings per diluted share for 2005 to range from $2.50 to $2.70, up from the prior estimate of $2.05 to $2.30. "We are expecting a solid 2005 fourth quarter earnings performance, exceeding last year's very strong performance," said Dolan. "Our core strategies and long-term strategic plan are delivering significantly improved performance. We will continue to focus on them as we transition to new leadership at Tennant." As previously announced, Chris Killingstad, currently Tennant's vice president, North America, will succeed Dolan as president and chief executive officer on December 1, 2005.
