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The Amherst-based maker of cranes, hoists and material hauling products said the loss of 13 cents per share compared to profits of $9.7 million, or 50 cents per share, a year ago.
That included $5.8 million in restructuring charges for consolidating North American hoist and rigging sales and marketing.
Not counting those charges and its discontinued Univeyer operation, the company earned $1.1 million, or 6 cents per share, on an operating basis, down 91 percent from $11.8 million, or 61 cents per share, a year ago.
But officials were quick to stress that the company remains well-capitalized, and is generating plenty of free cash flow to support its business, with $4.9 million in new cash during the quarter, even with new investments in products and expanding its markets. The company has $44.2 million in total cash, and has not tapped much of its bank credit line.
"We are well positioned to weather this economic storm and will continue to make prudent investments," said President and CEO Timothy T. Tevens. "This is going to position our company to be much stronger as we emerge from this economic malaise."
Net sales fell 21.3 percent to $119 million, including $17.6 million from the acquisition of Pfaff-silberflau in Germany on Oct. 1, 2008. Without Pfaff, sales fell 32.9 percent because of lower industrial and commercial activity worldwide, coupled with the company's tendency for bookings to lag general industrial production and usage by one to two quarters.
Foreign currency exchange hurt sales by $4.1 million, or 2.7 percent, while pricing helped by $2.2 million, or 1.5 percent.
The company's gross profit fell 34 percent from lower volumes, while the profit margin also fell. Bookings are down 40 percent without Pfaff and 30 percent with it, while the backlog is $68.6 million, flat with the last quarter. Those orders represent four to five weeks of shipments.
In response, the company speeded up its ongoing cost-cutting efforts aimed at reducing its manufacturing operations, becoming more efficient, and generating more sales. That helped a little during this quarter, but is expected to result in $7 million to $8 million in annual cost savings, starting next quarter.
"Cost control is the name of the game right now, but it is balanced by strategic investments to position our company for the future," Tevens said.
jepstein@buffnews.com
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