Manufacturers report earnings

Several industrial supply manufacturers turned in strong quarterly financial reports.

Columbus McKinnon Corporation
Columbus McKinnon said its net sales for the second quarter of fiscal 2012 were $149.9 million, up $17.6 million, or 13.3 percent, from the prior-year period based on strength across all geographic markets. Sales outside of the U.S. expanded 22.7 percent to $70.1 million and comprised 47 percent of total net sales, compared with $57.1 million, or 43 percent of total sales, in the second quarter of fiscal 2011.

"We continue to see solid growth in all markets with excellent expansion in the Latin American countries and Asia, specifically China, as well as strengthening in the U.S. markets. Our growth in the European markets continues, albeit at a somewhat slower pace. Our strategy to expand our international presence in Asia, Latin America and Eastern Europe, while targeting end markets in the U.S., has been a key driver to our double digit growth in the last four quarters," said Timothy T. Tevens, president and chief executive officer. "As we continue to execute on our growth strategy, we expect that sales outside the U.S. market will grow faster than the U.S. and beyond our stated goal of achieving 50 percent of our sales outside the U.S."

3M
3M reported third-quarter sales of $7.5 billion, up 9.6 percent year-on-year. Operating margins were 21.0 percent. Earnings were $1.52 per share, a 1 percent decline versus the third quarter of 2010.

Third-quarter worldwide sales growth was 9.6 percent, of which 3.7 percent came from acquisitions, 3.1 percent from foreign exchange impacts, 1.9 percent from organic volume growth and 0.9 percent from higher year-on-year selling prices.

Industrial and Transportation segment sales were $2.6 billion, up 15.1 percent in local currency, including 6.8 percent from acquisitions. All businesses grew sales in local currencies, with double-digit increases in abrasives, industrial adhesives and tapes. Sales rose by 28 percent in Asia Pacific, 22 percent in Europe, 15 percent in Latin America/Canada and 10 percent in the U.S.

Safety, Security and Protection Services segment sales were $954 million, up 14.1 percent in local currency, including 5.7 percent from acquisitions. The segment showed strong double-digit local-currency sales growth in personal safety products.

Kennametal
Kennametal Inc. reported a record fiscal 2012 first quarter earnings per diluted share of 88 cents compared with prior year quarter reported EPS of 42 cents. Sales were $659 million, compared with $529 million in the same quarter last year. Sales increased as a result of organic growth of 17 percent, a 7 percent favorable impact from foreign currency effects and a favorable impact from more business days.

"Organic revenue growth of 17 percent for the quarter reflects ongoing customer demand on top of strong growth from the prior year quarter. For the September quarter, Kennametal again delivered record financial results, driven by increased sales volumes across our served end markets and geographies," said Carlos Cardoso, Kennametal's chairman, president and chief executive officer.

Timken Company
The Timken Company reported sales of $1.3 billion in the third quarter of 2011, an increase of 25 percent over the same period a year ago. The increase primarily reflects demand growth across the company's diverse industrial markets, as well as favorable effects from pricing, material surcharges and acquisitions.

The company generated higher third-quarter income from continuing operations, up 55 percent to $111 million, or $1.12 per diluted share, net of non-controlling interest, compared with $71.4 million, or 73 cents per diluted share a year ago. The improvement reflects higher volume, favorable mix, surcharges and pricing, which more than offset increased raw-material costs, as well as higher selling and administrative costs.

Precision Castparts
Precision Castparts said its sales totaled $1.8 billion in the second quarter of fiscal 2012, growing by 19 percent over total sales of $1.5 billion in the same quarter last year. In addition, operating income was $436.9 million, or 24.4 percent of sales in the quarter, a year-over-year increase of 21 percent over operating income of $362.6 million, or 24.0 percent of sales, a year ago. Net income from continuing operations totaled $294.5 million, compared to $243.6 million in the second quarter of fiscal 2011.

Total sales for Fastener Products in the second quarter of fiscal 2012 were $414.9 million, an increase of 27 percent over sales of $327.1 million a year ago.

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