Contact:
Karen L. Howard
Vice President - Finance and Chief Financial Officer
Columbus McKinnon Corporation
716-689-5550
karen.howard@cmworks.com
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COLUMBUS MCKINNON TO PROVIDE STRATEGIC OUTLOOK
ESTABLISHES LONG-TERM GOAL OF $1 BILLION IN REVENUE
NEW YORK, N.Y., February 1, 2008 - Columbus McKinnon Corporation (NASDAQ: CMCO),
a leading designer, manufacturer and marketer of material handling products,
will outline its strategy to continue to grow the business and announce its
long-term goals at an investor seminar it is hosting here today.
Timothy T. Tevens, President and Chief Executive Officer of Columbus McKinnon,
will discuss the Company's long-term goal of achieving $1 billion in revenue
driving towards an equal balance between domestic and international sales.
Strategically, this growth is expected to occur through a combination of organic
increases and selective acquisitions, with acquisitions expected to add
approximately $100 to $200 million in sales. With an emphasis on innovation,
Columbus McKinnon plans for new products to contribute 20% to total sales in the
long term.
Mr. Tevens commented, "Our vision is to be the material handling leader in the
world for products which productively and safely lift, move and position, and
secure material. We believe that we can continue to expand our global market
share through innovation in product development and marketing, while maintaining
strong profit margins and applying lean manufacturing processes throughout our
organization."
He continued, "Achieving our goals is also dependent on finding and acquiring at
the right price bolt-on businesses that expand or deepen our reach into targeted
geographic or industrial markets or enhance our product offering." Columbus
McKinnon strategically targets companies globally with sales under $50 million
and that will be synergistic and generally accretive to earnings in the first
year.
Columbus McKinnon announced on January 24, 2008, 9.3% growth in revenue and 8.3%
expansion in earnings per diluted share for its third quarter fiscal 2008 which
ended December 30, 2007. On a trailing 12 month basis, the Company's current
revenue is approximately $612 million, comprised of 66% domestic and 34%
international sales.
Karen L. Howard, Chief Financial Officer of Columbus McKinnon, will discuss
additional financial goals which include achieving a working capital to revenue
ratio of 15 percent and an inventory turnover ratio of six to seven times.
Columbus McKinnon is targeting to maintain operating margins in the 12 to 14
percent range. It is focused on having a strong and flexible balance sheet and a
gross debt to total capitalization ratio of around 30 percent, allowing for
flexibility to 50 percent for acquisitions. At December 30, 2007, Columbus
McKinnon's gross debt to total capitalization ratio was 34.9%.
Other topics that will be covered by additional members of the executive
management team during today's seminar include the Company's lean manufacturing
initiatives, new product development program, new market opportunities,
international growth opportunities and its plans for employee excellence.
The seminar will be webcast beginning at approximately 8:30 a.m. ET and can be
accessed at Columbus McKinnon's Web site: http://www.cmworks.com. It will also
be broadcast over MultiVu, a service of PR Newswire, at:
http://www.videonewswire.com/event.asp?id=45620. You must have Windows Media
Player or RealPlayer's audio software on your computer to listen to the webcast.
Both are available for downloading at the Columbus McKinnon Web site and the
MultiVu Web site at no charge.
You may access an archived webcast of the presentation on Columbus McKinnon's
Web site at: http://www.cmworks.com until April 30, 2008. A transcript of the
presentation will be posted to the Web site, when available.
Slides of the presentations given at today's seminar are also available on the
Company's website at www.cmworks.com.
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ABOUT COLUMBUS MCKINNON
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Columbus McKinnon is a leading worldwide designer, manufacturer and marketer of
material handling products, systems and services, which efficiently and
ergonomically move, lift, position or secure material. Key products include
hoists, cranes, chain and forged attachments. The Company is focused on
commercial and industrial applications that require the safety and quality
provided by its superior design and engineering know-how. Comprehensive
information on Columbus McKinnon is available on its web site at
http://www.cmworks.com.
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SAFE HARBOR STATEMENT
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THIS NEWS RELEASE CONTAINS "FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF
THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. SUCH STATEMENTS INCLUDE,
BUT ARE NOT LIMITED TO, STATEMENTS CONCERNING FUTURE REVENUE AND EARNINGS,
INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT COULD
CAUSE THE ACTUAL RESULTS OF THE COMPANY TO DIFFER MATERIALLY FROM THE RESULTS
EXPRESSED OR IMPLIED BY SUCH STATEMENTS, INCLUDING GENERAL ECONOMIC AND BUSINESS
CONDITIONS, CONDITIONS AFFECTING THE INDUSTRIES SERVED BY THE COMPANY AND ITS
SUBSIDIARIES, CONDITIONS AFFECTING THE COMPANY'S CUSTOMERS AND SUPPLIERS,
COMPETITOR RESPONSES TO THE COMPANY'S PRODUCTS AND SERVICES, THE OVERALL MARKET
ACCEPTANCE OF SUCH PRODUCTS AND SERVICES, THE EFFECT OF OPERATING LEVERAGE, THE
PACE OF BOOKINGS RELATIVE TO SHIPMENTS, THE ABILITY TO EXPAND INTO NEW MARKETS
AND GEOGRAPHIC REGIONS, THE SUCCESS IN ACQUIRING NEW BUSINESS, THE SPEED AT
WHICH SHIPMENTS IMPROVE, AND OTHER FACTORS DISCLOSED IN THE COMPANY'S PERIODIC
REPORTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. THE COMPANY ASSUMES
NO OBLIGATION TO UPDATE THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS
RELEASE.
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