Tennant reports rise in third-quarter sales

Tennant Co reports fiscal-third-quarter sales of US$272 million.

Tennant Co. has reported fiscal-third-quarter sales of US$272 million, a jump of 4.7 per cent on an organic basis from the previous year.

The company posted a net income of $21.5 million or $1.14 per share, up from $11.7 million, or $0.63 per share, a year earlier.

Sales in the company’s EMEA division climbed 16.1 per cent compared to the previous year while Tennant’s Americas division reported a slight decrease of 0.6 per cent in sales.

Sales in APAC decreased 0.4 per cent, or 2.9 per cent on an organic basis.

According to the company, the sales decline was partially attributed to pandemic-related lockdowns in some markets during the third quarter of 2021, along with supply-chain disruptions and labour constraints that affected North American plants supplying APAC, which limited the company’s ability to meet orders in China and Japan.

The region recorded strong results for parts and consumables and service, along with strength in Australia across all product categories.

Dave Huml, Tennant Company’s president and CEO, said Tennant’s third-quarter results reflect a robust market recovery and a return to pre-pandemic product demand across the majority of its geographic markets.

“While we are encouraged by this business recovery, our third-quarter performance was impacted by the increasing global supply disruptions and labor constraints that have cut across virtually every industry. These macro-level headwinds did create operational challenges within the quarter, which resulted in a record level of order backlog,” Huml said.

“In response to these market headwinds, we’ve taken actions wherever possible to minimise the impact on our operations, to safeguard our customer experience, and to deliver on our financial commitments.

“In addition to our short-term mitigation actions, we continue to benefit from changes we’ve made, and continue to make, to our operating model. We remain confident in our ability to drive sustainable growth and improve our operational efficiencies to continue to generate long-term value for our shareholders.”

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