Chief Executive Chris Killingstad said strong revenue growth and "disciplined expense management" allowed Tennant Co. to post a profit in fiscal year 2018 after posting a loss the year before.
Sales for the year were up 12 percent to $1.1 billion, across all three global regions where the maker of industrial cleaners does business, the company said Thursday. For the quarter, sales rose 2.1 percent to $285.2 million.
The Golden Valley-based company cleaned up its balance sheet despite headwinds caused by tariffs, inflationary prices on raw materials, increasing freight costs and tight labor markets, Killingstad said. The fourth quarter marked six consecutive quarters of organic sales growth.
Earnings for the quarter were $7.7 million, or 42 cents a share, compared with a net loss of $3.2 million in the same quarter of 2017. Earnings adjusted for one-time costs such as acquisitions and tax adjustments were 54 cents a share, which beat Wall Street estimates by 6 cents.
Earnings for the year were $33.4 million, or $1.82 per share, compared with a net loss of $6.2 million, or 35 cents per share, a year ago. Adjusted earnings were $2.18 a share.
The company is estimating 2019 sales at $1.15 billion to $1.17 billion. Adjusted earnings guidance is in the range of $2.30 to $2.50 a share.
Shares of Tennant closed at $64.09 per share Thursday, up 4 percent.
Shares over the last 52 weeks have traded between $48.97 and $86.03 per share.
