A continued sluggish economy for industrial manufacturers hurt third-quarter sales for Tennant Co., but the maker of cleaning equipment and supplies expects to return to organic sales growth in the fourth quarter.
Tennant officials said Tuesday they expect investments in new growth initiatives and products to position the company for growth in 2017.
The Golden Valley-based company made $11.5 million, or 64 cents per share, on sales of $200.1 million for the quarter ended Sept. 30.
Analysts were expecting the company to make 62 cents per share for the quarter on sales of $203.2 million.
"Despite the slow growth environment for industrial manufacturers that led to lower sales in the EMEA [Europe, Middle East and Africa] and Asia Pacific regions, our Americas region posted record revenue for a third quarter," said CEO Chris Killingstad in a statement. "We remain competitively well positioned and excited about our growth prospects."
In the third quarter of 2015, the company had reported a net loss of $1 million, or 5 cents per share, on sales of $204.8 million.
Excluding charges, Tennant's adjusted net earnings for the year-ago quarter were $12.1 million, or 68 cents per share.
Tennant now anticipates 2016 net sales in the range of $805 million to $815 million and full-year earnings in the range of $2.40 to $2.60 per diluted share.
The previous forecast had sales at $800 to $820 million and earnings from $2.35 to $2.60 per share.
Should sales come in at the high end of the new range, it would represent a 0.4 percent gain for the year.
Patrick Kennedy • 612-673-7926
