Tennant Co.'s second-quarter profit rose 8.9 percent and sales hit a record, shaped by demand for a commercial floor-cleaning machine called the T12 rider scrubber.
New products like the T12 are the cornerstone to the company's plan to reach $1 billion in annual sales by 2017. Sales of those machines rose 7.6 percent in the quarter, surpassing $40 million for the first time. "Initial results from our new growth strategy are very encouraging," CEO Chris Killingstad said.
Golden Valley-based Tennant introduced nine new products in the first half of 2014 and plans to introduce seven more in the second half of the year. Overall, it aims to release 63 new products and technologies from 2014 through 2016.
In the latest period, Tennant earned $15.5 million, or 83 cents a diluted share, up from $14.3 million or 76 cents a share, a year ago. Sales rose 9.4 percent to $219.1 million. The performance beat analysts' expectations and the company's stock rose 3 percent Thursday.
Based on its strong first-half results, Tennant raised its guidance for the rest of the year. It now expects 2014 sales to be between $800 million and $815 million, up from the previous range of $780 million to $800 million. It lifted its per-share earnings expectation to between $2.60 and $2.80, narrowing from the previous range of $2.50 to $2.80.