Tennant Company Reports Gain on Sale of Maple Grove, Minnesota, Facility
Tennant Company Reports Gain on Sale of Maple Grove, Minnesota, Facility
Company updates 2007 full-year guidance
MINNEAPOLIS, Minn., Dec. 20, 2007—Tennant Company (NYSE: TNC), a world leader in designing, manufacturing and marketing of solutions that help create a cleaner, safer world, today reported an aftertax gain on the sale of its Maple Grove, Minnesota, facility of approximately $3.7 million, or $0.19 per diluted share. As previously disclosed, Tennant Company has already moved all operations out of the Maple Grove plant and integrated them into its other facilities to enable greater efficiency.
”We are pleased to complete the sale of our Maple Grove facility this year, as anticipated,” said Chris Killingstad, Tennant Company’s president and chief executive officer. “This sale marks an important step toward achieving our North American footprint consolidation and aligns with our strategic priority of operational excellence through lean manufacturing initiatives.”
The company remains focused on leveraging its cost structure and generating growth. Its strategic priorities remain: employing continuous process improvement; improving operational excellence through lean manufacturing initiatives and a global, low-cost sourcing platform; and growing revenues through innovative new products and service solutions, as well as through international market expansion.
Business Outlook
Tennant Company is increasing its range by $0.19 per diluted share due to the approximate gain from the sale of the Maple Grove facility. Full-year net earnings per diluted share are now anticipated to range from $2.07 to $2.15, up from its most recent estimate of $1.88 to $1.96 and compared to $1.57 per diluted share in 2006. The company previously reported that it anticipated a gain on the sale of the Maple Grove, Minnesota, facility; however, an estimate of the gain had not been included in previous guidance because of the uncertainty of the transaction price.
Company Profile
Minneapolis-based Tennant Company (NYSE: TNC) is a world leader in designing, manufacturing and marketing solutions that help create a cleaner, safer world. Its products include equipment for maintaining surfaces in industrial, commercial and outdoor environments; and coatings for protecting, repairing and upgrading concrete floors. Tennant’s global field service network is the most extensive in the industry. Tennant has manufacturing operations in Minneapolis, Minn.; Holland, Mich.; Uden, The Netherlands; Northampton, United Kingdom; and Shanghai, China; and sells products directly in 15 countries and through distributors in more than 80 countries. For more information, visit www.tennantco.com.
Forward-Looking Statements
Certain statements contained in this document as well as other written and oral statements made by us from time to time are considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. These statements do not relate to strictly historical or current facts and provide current expectations or forecasts of future events. Any such expectations or forecasts of future events are subject to a variety of factors. These include factors that affect all businesses operating in a global market as well as matters specific to us and the markets we serve. Particular risks and uncertainties presently facing us include: geopolitical and economic uncertainty throughout the world; changes in laws, including changes in accounting standards and taxation changes; inflationary pressures; the potential for increased competition in our business; the relative strength of the U.S. dollar, which affects the cost of our materials and products bought and sold internationally; fluctuations in the cost or availability of raw materials and purchased components; the success and timing of new products; our ability to achieve projections of future financial and operating results; successful integration of acquisitions, including the ability to carry acquired goodwill at current values; the ability to achieve operational efficiencies, including synergistic and other benefits of acquisitions; the ability to achieve anticipated global sourcing cost reductions; unforeseen product quality problems; our ability to acquire, retain and protect proprietary intellectual property rights; the effects of litigation, including threatened or pending litigation; our ability to benefit from production reallocation plans, including benefits from our expansion in China; and our plans for growth.
We caution that forward-looking statements must be considered carefully and that actual results may differ in material ways due to risks and uncertainties both known and unknown. Shareholders, potential investors and other readers are urged to consider these factors in evaluating forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. For additional information about factors that could materially affect Tennant's results, please see our other Securities and Exchange Commission filings, including disclosures under "Risk Factors."
We do not undertake to update any forward-looking statement, and investors are advised to consult any further disclosures by us on this matter in our filings with the Securities and Exchange Commission and in other written statements we make from time to time. It is not possible to anticipate or foresee all risk factors, and investors should not consider any list of such factors to be an exhaustive or complete list of all risks or uncertainties.
INVESTOR CONTACT:
Tom Paulson
Vice President and Chief Financial Officer
763-540-1204
MEDIA CONTACT:
Kathryn Lovik
Director, Communications
763-540-1212
