Tennant Co. reported a drop in second-quarter sales and profits Thursday and noted that it was the latest manufacturer to be stung by the high U.S. dollar and unfavorable currency exchange rates.
The Golden Valley-based maker of floor and street cleaning machines lowered its guidance for full year 2015.
For the quarter, officials said foreign currency exchange rates pinched sales by 5.5 percent.
In the end, total revenue dipped 1.6 percent to $215.4 million. Profit fell 4.5 percent to $14.8 million, or 79 cents a share.
Without exchanging currencies, Tennant officials saw product sales grow, particularly in its largest markets of North and South America. In those markets, sales jumped 7.5 percent during the quarter with the help of new product introductions and the acceptance of the company’s growing line of environmentally friendly scrubbers.
While the Americas grew, local sales in Europe, the Middle East and Africa fell 1.7 percent. Sales in China grew 15 percent, but officials noted that was not enough to offset weakness in the region.
Factoring in the high U.S. dollar and exchange rates, Tennant lowered its forecast for full year 2015. Global sales are now expected to grow 2.8 percent to a range of $825 million to $845 million, That’s down from the prior guidance of $825 million to $855 million.
Tennant’s stock fell $1.28, or 2 percent, to close Thursday at $62.32.