Tennant Co. (TNC) reported first-quarter net earnings of $5.1 million, or $0.27 per share, down from $5.3 million, or $0.28 per share in the year ago quarter.
The 2013 first quarter included two special items. The company took a $1.4 million pre-tax restructuring charge, or $0.05 per diluted share, to rightsize the European operations, given continued challenging economic conditions there. This was partially offset by a $0.6 million, or $0.03 per diluted share, tax benefit, related to the retroactive reinstatement of the 2012 U.S. Federal R&D Tax Credit.
Excluding these special items, adjusted 2013 first quarter earnings totaled $5.5 million, or $0.29 per diluted share.
The company's 2013 first quarter consolidated net sales of $168.1 million decreased 3.2 percent compared to $173.7 million in the prior year quarter. Unfavorable foreign currency exchange impacted consolidated net sales by approximately 1.0 percent. Organic net sales, which exclude the impact of foreign currency exchange (and acquisitions when applicable), decreased approximately 2.2 percent.
Analysts polled by Thomson Reuters expected the company to report earnings of $0.36 per share on revenues of $174.70 million for the quarter. Analysts' estimates typically exclude special items.
The company continues to estimate 2013 full year adjusted earnings in the range of $2.20 to $2.50 per share on net sales in the range of $750 million to $770 million. Including the 2013 first quarter special items of a net loss of $0.02 per share, the company expects 2013 full year earnings per share in the range of $2.18 to $2.48.
Analysts expect the company to report earnings of $2.45 per share on revenues of $761.95 million for fiscal 2013.
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