Columbus McKinnon Corporation reported unaudited consolidated earnings results for the third quarter and nine months ended December 31, 2012. For the quarter, the company reported net sales were $153.225 million against $142.750 million a year ago. For the quarter, the company reported revenue was up 7.3%, but was negatively affected by foreign currency translation and a divestiture that impacted the quarter. Otherwise, it was up, if remove those 2, 10.6%. The U.S. revenue continues to grow nicely, up 5.4% or up 10.9% excluding that divestiture that occurred in the second quarter of this fiscal year. Sales outside of the United States were up 9.7% or 12.9% excluding the effects of foreign currency translation. Operating income increased by 18.2% to $14.2 million or 9.3% of sales compared to 8.4% of sales in the previous year. The improvement in operating income is being driven by the net pricing gains over materials inflation, as well as higher sales volume and mix more than offsetting SG&A increases previously discussed. Excluding the gain on the sale of a closed facility that happened in the prior year, operating income expanded 34.7%. Income per diluted share for the third quarter of fiscal 2013 was $0.49, reflecting a $0.05 increase from the prior year period where the company reported earnings of $0.44 per share. The effective tax rate in the quarter was 11.1% versus 16.4% in the prior year period due to the mix of earnings in the U.S. versus foreign affiliates and the fact that have a valuation allowance against deferred tax assets in the U.S. On a pro forma basis, using a 38% tax rate, earnings per share in the third quarter of fiscal 2013 were $0.34 per share versus $0.32 a share in the third quarter of fiscal 2012.
Income before income tax expense was $10.772 million against $10.181 million a year ago. Income from continuing operations was $9.579 million or $0.49 per diluted share against $8.515 million or $0.44 per diluted share a year ago. Net income was $9.579 million against $8.515 million a year ago.

For the nine months, the company reported net sales were $452.710 million against $432.373 million a year ago. Income from operations was $39.890 million against $31.527 million a year ago. Income before income tax expense was $30.771 million against $23.459 million a year ago. Income from continuing operations was $26.267 million or $1.34 per diluted share against $17.561 million or $0.90 per diluted share a year ago. Net income was $26.267 million against $17.970 million a year ago. For the year-to-date, revenue was up 4.7%, largely driven by volume and price increases offset by $16.3 million of unfavorable foreign currency translation. Excluding the impact of foreign currency translation, revenue was up 8.5%. generated $19.1 million of operating free cash flow in the 9 months ended December 31, 2012. Capital expenditures were $7.1 million versus $10.5 million in the previous year. Net debt was $40.4 million, and total gross debt was $152.3 million. Net debt to net total capitalization was 17.6%. Earnings per share are $1.34 versus $0.92 in the previous year. Operating income is up 26.5% as a result of the additional gross margin. Net cash provided by operating activities was $26.287 million against $13.463 million a year ago.

For the fiscal 2013, the company expects capital expenditures for to be in the $12 million to $15 million range. The effective tax rate for fiscal 2013 is expected to be between 13% and 17% based on a geographic mix of earnings that anticipate.