Tennant Reports First Quarter Results; Earnings Per Share Before Restructuring Charge Total $.38

Apr 24, 2001, 01:00 ET from Tennant Company

    MINNEAPOLIS, April 24 /PRNewswire Interactive News Release/ --
     Tennant Company (NYSE:   TNC), a leader in nonresidential floor maintenance
 and outdoor cleaning equipment, today reported net earnings of $3.5 million or
 $.38 per diluted share, before a restructuring charge, on net sales of
 $103.7 million for the quarter ended March 31, 2001.  Including the
 restructuring charge, first quarter net earnings were $200,000, or $.02 per
 diluted share.  In the comparable 2000 period, the company reported net
 earnings of $5.5 million, or $.60 per diluted share, on net sales of
 $108.4 million.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000719/TENNLOGO )
     Tennant's 2001 first quarter results include a restructuring charge of
 $3.3 million after tax, or $.36 per diluted share, related to previously
 announced plans to close a leased plant in Germany and transfer production to
 a contract manufacturer in the Czech Republic.  The restructuring charge
 includes severance payments, a building lease buy-out and write-downs of
 certain fixed assets.
     Negative foreign currency exchange effects, resulting primarily from the
 strength of the U.S. dollar compared to the Euro, reduced net sales in the
 2001 first quarter by approximately $1.9 million and earnings per share by
 approximately $.07 per share.
     "As we indicated last February in our outlook for 2001, the economic
 slowdown, persistent negative foreign currency exchange effects and
 inefficiencies in our European operations resulted in a difficult first
 quarter," said Janet M. Dolan, Tennant Company's president and chief executive
 officer.  "While our North American service and commercial equipment
 businesses delivered strong performances, the growth in these areas did not
 fully offset the weakness in industrial equipment resulting from the sharp
 decline in the North American manufacturing sector.  We also encountered
 operating challenges in Europe that reduced sales and earnings in that region.
 We are acting to address these problems and expect improved performance in
 Europe in the second half of the year," said Dolan.
     Dolan said Tennant is aggressively reducing costs to adjust to current
 business conditions, strive for full year earnings growth and further enhance
 the company's competitive position.  The company is reducing its worldwide
 workforce by approximately 6 percent (including previously announced
 reductions in Germany), implementing salary reductions, reducing direct labor
 hours, deferring new hires and significantly cutting discretionary spending.
 "Some of these measures are temporary to manage through this economic
 slowdown," said Dolan, "but part of our long-term strategy is to reduce the
 costs to serve our customers, and many of these actions will help us in this
 regard."  She categorized the company's transfer of production from its plant
 in Germany to a contractor in the Czech Republic as an example of the latter.
 Dolan said that the workforce reductions and other actions announced today are
 expected to result in a second quarter restructuring charge of approximately
 $2.2 to $2.5 million after tax, or $.24 to $.27 per share.
     Dolan commented that the economic slowdown has proven to be worse than
 earlier consensus forecasts of the Industrial Production Index (IPI), the
 economic indicator that historically correlates most closely with activity in
 Tennant's North American industrial area.  Current consensus estimates of the
 IPI forecast a year-over-year decline in activity in the first and second
 quarters of 2001 with a return to growth in the third and fourth quarters.
     "If growth at near the forecasted IPI levels occurs, and with the
 aggressive cost-reduction measures we are implementing, we currently expect
 earnings per share for the full year, before one-time items, to range from
 $3.10 to $3.20 per share," said Dolan.  The company earned $3.09 per diluted
 share in 2000.  "As we stated last quarter, we expected a challenging first
 half of 2001.  Second quarter earnings per share are likely to be below last
 year, but we expect better period-to-period comparisons in the second half."
 Dolan emphasized that Tennant remains committed to planned investments in
 areas that will drive future revenue growth and improvement in operating
 performance.  These include new product development, investment in new CAD/CAM
 software, completion of the implementation of the company's Enterprise
 Resource Planning (ERP) system, and the previously mentioned transfer of
 production in Europe.
     In a separate news release, the company announced today formation of a
 joint venture with Johnson Wax Professional that is introducing a
 revolutionary floor cleaning system primarily for commercial applications.
 Tennant expects to begin realizing revenues from this new product in the
 current quarter.
 
     Review of Results
     Compared with the 2000 first quarter, consolidated net sales declined
 4.3%.  Adjusted to exclude negative foreign currency exchange effects,
 consolidated net sales for the 2001 first quarter declined 2.6%.  This decline
 resulted primarily from slower sales of industrial floor maintenance equipment
 reflecting the rapid decline in the North American industrial economy.  The
 decline was somewhat offset, however, by double-digit sales growth in the
 North American service and commercial equipment areas.
     Operating profit for the 2001 first quarter totaled $4.9 million,
 excluding restructuring charges, down 43% from $8.6 million in the comparable
 2000 period.  The decline resulted primarily from the slowdown in the North
 American industrial equipment category, the unfavorable foreign currency
 exchange effects noted previously, and the effects of the European operating
 challenges.  While orders were above plan in Europe in the first quarter,
 production and pricing issues adversely affected financial performance.
     "To adjust to changes in the marketplace, reduce our costs and serve our
 customers better, we have been shifting to a Pan-European approach to managing
 our operations in Europe," said Dolan.  "In the transition, we have
 encountered production inefficiencies and difficulties in implementing a
 Pan-European pricing program that have reduced our sales and earnings.  We are
 correcting these problems and currently expect improving performance in Europe
 in the second half of the year.  The transfer of production from our German
 plant to our contract manufacturer in the Czech Republic is proceeding on
 schedule and production has begun as planned."
     In North America, sales for the 2001 first quarter totaled $74.3 million,
 down 3.1% from $76.7 million in the 2000 first quarter.  Sales of commercial
 floor cleaning equipment grew at a double-digit rate, outpacing the market
 growth rate as Tennant gained share in this category while also completing
 implementation of its ERP system at its Holland, Michigan plant.  Service
 revenues also grew at a double-digit rate compared with the 2000 first
 quarter, continuing a trend that now spans 15 years.  The growth in these
 areas, however, did not fully offset the decline in industrial equipment sales
 resulting from the deteriorating conditions in the North American industrial
 economy.
     In Europe, sales for the 2001 first quarter totaled $18.2 million, down
 10.3% from $20.3 million in the 2000 first quarter.  Adjusted to exclude
 negative foreign currency exchange effects, European sales for the 2001 first
 quarter declined 4.4% compared with the 2000 first quarter.  The decline was
 primarily the result of the operational issues previously noted.
     In Tennant's other international markets, sales for the 2001 first quarter
 fell 1.8% to $11.2 million compared with $11.4 million in the 2000 first
 quarter.  Adjusted to exclude negative foreign currency exchange effects, 2001
 first quarter sales to export markets grew 2.6% despite a downturn in sales to
 Japan, where economic conditions remain difficult.
     Consolidated orders for the 2001 first quarter fell 10% compared with the
 2000 first quarter.  Order backlog at March 31, 2001, totaled $11 million
 compared to $7 million at December 31, 2000, and $20 million at March 31,
 2000.
     "While we are taking the steps necessary to respond to the difficult
 business conditions we face in the near term, we are also strengthening
 Tennant for the long term," said Dolan.  "We continue to invest in new product
 development and in opportunities, including capital projects, that offer the
 potential to improve efficiency, shorten cycle times, reduce costs and improve
 our overall competitive position.  We are a financially sound company, well
 positioned to weather the current downturn and emerge from it as an even
 stronger business."
 
     Company Profile
     Tennant is a world-leading manufacturer of nonresidential floor
 maintenance and outdoor cleaning equipment, floor coatings and related
 offerings.  Its products include scrubbers, sweepers, extractors, buffers and
 other specialized floor cleaning equipment and supplies, plus a complete line
 of industrial floor coatings.  Tennant's stock is traded on the New York Stock
 Exchange under the symbol TNC.  For more information about Tennant and to
 register to receive emailed notification of company news releases, visit
 http://www.tennantco.com .
     Tennant will host a conference call to discuss its first quarter and full
 year results today, April 24, 2001, at 10:00 a.m. Central Time.  The
 conference call will be available via webcast on the investor portion of
 Tennant's Web site.  To listen to the call live on the Web, go to
 www.tennantco.com at least 15 minutes before the scheduled start time and, if
 necessary, download and install audio software.  A taped replay of the
 conference call will be available at http://www.tennantco.com for about two
 weeks after the call.
     This news release includes forward-looking statements involving risks and
 uncertainties.  These include factors that affect all businesses operating in
 a global market as well as matters specific to the company and the markets it
 serves.  Particular risks and uncertainties currently facing Tennant include:
 the ability to implement its plan to increase worldwide manufacturing
 efficiencies; political and economic uncertainty throughout the world;
 inflationary pressures; the potential for increased competition in the
 company's businesses from competitors that have substantial financial
 resources; the potential for soft markets in certain regions, including North
 America, Asia, Latin America and Europe; the relative strength of the U.S.
 dollar, which affects the cost of the company's products sold internationally;
 the ability to successfully implement the SAP enterprise resource planning
 system; and the company's plan for growth.  For additional information about
 factors that could materially affect Tennant's results, please see the
 company's Securities and Exchange Commission filings.
 
 
                        TENNANT COMPANY AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
 
     (In millions, except per share data)  Three Months Ended March 31
                                                 2001                 2000
                                    Before
                                Restructuring Restructuring Reported Reported
                                   Charges       Charges
     Net sales                      $103.7          --      $103.7   $108.4
     Cost of sales                    64.0          --        64.0     64.4
     Selling and administrative
      expenses                        34.8          --        34.8     35.4
     Restructuring charges              --         5.1         5.1       --
 
     Profit from operations            4.9        (5.1)        (.2)     8.6
       Operating margin                4.7%                    (.2%)    7.9%
 
     Interest income (expense), net     .2          --          .2       .1
     Other income (expense)             .3          --          .3      (.1)
 
     Earnings before income taxes      5.4        (5.1)         .3      8.6
     Income tax expense (benefit)      1.9        (1.8)         .1      3.1
 
     Net earnings                     $3.5       $(3.3)        $.2     $5.5
 
     Basic EPS                        $.39       $(.37)       $.02     $.60
 
     Diluted EPS                      $.38       $(.36)       $.02     $.60
 
     Average number of shares
      (diluted)                       9.24                    9.24     9.16
 
 
                        TENNANT COMPANY AND SUBSIDIARIES
               CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited)
 
     (In millions)                                  2001           2000
                                                  Mar. 31    Dec. 31   Mar. 31
     ASSETS
     Cash and cash equivalents                     $16.7      $21.5      $4.7
     Net receivables                                88.0       88.3      88.4
     Inventories                                    54.9       51.9      51.7
     Deferred income taxes and other current
      assets                                         9.8        9.9      12.7
       Total current assets                        169.4      171.6     157.5
 
     Net property, plant, and equipment             69.0       66.7      65.1
     Deferred income taxes, long-term portion        3.9        4.3       6.2
     Intangible assets                              17.6       17.7      19.0
     Other assets                                    3.3        3.0       1.1
 
       Total assets                               $263.2     $263.3    $248.9
 
                                                    2001            2000
                                                  Mar. 31    Dec. 31   Mar. 31
     LIABILITIES AND SHAREHOLDERS' EQUITY
     Current debt                                  $14.1      $12.6      $6.5
     Accounts payable                               18.8       17.8      18.7
     Accrued expenses                               32.5       36.9      37.3
 
       Total current liabilities                    65.4       67.3      62.5
 
     Long-term debt                                 10.0       10.0      15.7
     Long-term employee benefits                    31.4       31.1      31.1
     Shareholders' equity                          156.4      154.9     139.6
       Total liabilities and shareholders'
        equity                                    $263.2     $263.3    $248.9
 
 
     GEOGRAPHICAL NET SALES(a) (Unaudited)
     (In millions)                        Three Months Ended March 31
                                       2001            2000         % of
                                                                   Change
     North America                     $74.3           $76.7        (3.1)%
     Europe                             18.2            20.3       (10.3)%
     Other International                11.2            11.4        (1.8)%
 
     Total                            $103.7          $108.4        (4.3)%
 
     (a) Net of intercompany sales
 
 
                        TENNANT COMPANY AND SUBSIDIARIES
          CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
 
     (In millions)                                       Three Months Ended
                                                               March 31
                                                         2001           2000
     CASH FLOWS RELATED TO OPERATING ACTIVITIES:
     Net earnings                                        $0.2           $5.5
 
     Adjustments to net earnings to arrive at
      operating cash flows:
       Depreciation and amortization                      5.2            4.5
       Deferred tax expense (benefit)                     0.3           (0.1)
       Changes in operating assets and liabilities       (3.4)          (8.1)
       Other, net                                         0.4            0.7
         Net cash flows related to operating activities   2.7            2.5
 
     CASH FLOWS RELATED TO INVESTING ACTIVITIES:
       Acquisition of property, plant and equipment      (7.0)          (3.4)
       Proceeds from disposals of property, plant and
        equipment                                         0.3            0.1
       Other, net                                          --           (1.0)
         Net cash flows related to investing activities  (6.7)          (4.3)
 
     CASH FLOWS RELATED TO FINANCING ACTIVITIES:
       Net changes in short-term borrowings               1.0           (1.5)
       Issuance (payments) of long-term borrowings         --           (5.0)
       Proceeds from employee stock issuances             0.3            0.3
       Purchase of common stock                          (1.2)          (1.4)
       Dividends to shareholders                         (1.8)          (1.7)
       Principal payment from ESOP                        0.8            0.7
         Net cash flows related to financing activities  (0.9)          (8.6)
 
     Effect of exchange rates on cash                     0.1            0.2
 
     Net increase (decrease) in cash and cash
      equivalents                                        (4.8)         (10.2)
 
     Cash and cash equivalents at beginning of year      21.5           14.9
 
     Cash and cash equivalents at end of period         $16.7           $4.7
 
                     MAKE YOUR OPINION COUNT -  Click Here
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SOURCE Tennant Company
    MINNEAPOLIS, April 24 /PRNewswire Interactive News Release/ --
     Tennant Company (NYSE:   TNC), a leader in nonresidential floor maintenance
 and outdoor cleaning equipment, today reported net earnings of $3.5 million or
 $.38 per diluted share, before a restructuring charge, on net sales of
 $103.7 million for the quarter ended March 31, 2001.  Including the
 restructuring charge, first quarter net earnings were $200,000, or $.02 per
 diluted share.  In the comparable 2000 period, the company reported net
 earnings of $5.5 million, or $.60 per diluted share, on net sales of
 $108.4 million.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000719/TENNLOGO )
     Tennant's 2001 first quarter results include a restructuring charge of
 $3.3 million after tax, or $.36 per diluted share, related to previously
 announced plans to close a leased plant in Germany and transfer production to
 a contract manufacturer in the Czech Republic.  The restructuring charge
 includes severance payments, a building lease buy-out and write-downs of
 certain fixed assets.
     Negative foreign currency exchange effects, resulting primarily from the
 strength of the U.S. dollar compared to the Euro, reduced net sales in the
 2001 first quarter by approximately $1.9 million and earnings per share by
 approximately $.07 per share.
     "As we indicated last February in our outlook for 2001, the economic
 slowdown, persistent negative foreign currency exchange effects and
 inefficiencies in our European operations resulted in a difficult first
 quarter," said Janet M. Dolan, Tennant Company's president and chief executive
 officer.  "While our North American service and commercial equipment
 businesses delivered strong performances, the growth in these areas did not
 fully offset the weakness in industrial equipment resulting from the sharp
 decline in the North American manufacturing sector.  We also encountered
 operating challenges in Europe that reduced sales and earnings in that region.
 We are acting to address these problems and expect improved performance in
 Europe in the second half of the year," said Dolan.
     Dolan said Tennant is aggressively reducing costs to adjust to current
 business conditions, strive for full year earnings growth and further enhance
 the company's competitive position.  The company is reducing its worldwide
 workforce by approximately 6 percent (including previously announced
 reductions in Germany), implementing salary reductions, reducing direct labor
 hours, deferring new hires and significantly cutting discretionary spending.
 "Some of these measures are temporary to manage through this economic
 slowdown," said Dolan, "but part of our long-term strategy is to reduce the
 costs to serve our customers, and many of these actions will help us in this
 regard."  She categorized the company's transfer of production from its plant
 in Germany to a contractor in the Czech Republic as an example of the latter.
 Dolan said that the workforce reductions and other actions announced today are
 expected to result in a second quarter restructuring charge of approximately
 $2.2 to $2.5 million after tax, or $.24 to $.27 per share.
     Dolan commented that the economic slowdown has proven to be worse than
 earlier consensus forecasts of the Industrial Production Index (IPI), the
 economic indicator that historically correlates most closely with activity in
 Tennant's North American industrial area.  Current consensus estimates of the
 IPI forecast a year-over-year decline in activity in the first and second
 quarters of 2001 with a return to growth in the third and fourth quarters.
     "If growth at near the forecasted IPI levels occurs, and with the
 aggressive cost-reduction measures we are implementing, we currently expect
 earnings per share for the full year, before one-time items, to range from
 $3.10 to $3.20 per share," said Dolan.  The company earned $3.09 per diluted
 share in 2000.  "As we stated last quarter, we expected a challenging first
 half of 2001.  Second quarter earnings per share are likely to be below last
 year, but we expect better period-to-period comparisons in the second half."
 Dolan emphasized that Tennant remains committed to planned investments in
 areas that will drive future revenue growth and improvement in operating
 performance.  These include new product development, investment in new CAD/CAM
 software, completion of the implementation of the company's Enterprise
 Resource Planning (ERP) system, and the previously mentioned transfer of
 production in Europe.
     In a separate news release, the company announced today formation of a
 joint venture with Johnson Wax Professional that is introducing a
 revolutionary floor cleaning system primarily for commercial applications.
 Tennant expects to begin realizing revenues from this new product in the
 current quarter.
 
     Review of Results
     Compared with the 2000 first quarter, consolidated net sales declined
 4.3%.  Adjusted to exclude negative foreign currency exchange effects,
 consolidated net sales for the 2001 first quarter declined 2.6%.  This decline
 resulted primarily from slower sales of industrial floor maintenance equipment
 reflecting the rapid decline in the North American industrial economy.  The
 decline was somewhat offset, however, by double-digit sales growth in the
 North American service and commercial equipment areas.
     Operating profit for the 2001 first quarter totaled $4.9 million,
 excluding restructuring charges, down 43% from $8.6 million in the comparable
 2000 period.  The decline resulted primarily from the slowdown in the North
 American industrial equipment category, the unfavorable foreign currency
 exchange effects noted previously, and the effects of the European operating
 challenges.  While orders were above plan in Europe in the first quarter,
 production and pricing issues adversely affected financial performance.
     "To adjust to changes in the marketplace, reduce our costs and serve our
 customers better, we have been shifting to a Pan-European approach to managing
 our operations in Europe," said Dolan.  "In the transition, we have
 encountered production inefficiencies and difficulties in implementing a
 Pan-European pricing program that have reduced our sales and earnings.  We are
 correcting these problems and currently expect improving performance in Europe
 in the second half of the year.  The transfer of production from our German
 plant to our contract manufacturer in the Czech Republic is proceeding on
 schedule and production has begun as planned."
     In North America, sales for the 2001 first quarter totaled $74.3 million,
 down 3.1% from $76.7 million in the 2000 first quarter.  Sales of commercial
 floor cleaning equipment grew at a double-digit rate, outpacing the market
 growth rate as Tennant gained share in this category while also completing
 implementation of its ERP system at its Holland, Michigan plant.  Service
 revenues also grew at a double-digit rate compared with the 2000 first
 quarter, continuing a trend that now spans 15 years.  The growth in these
 areas, however, did not fully offset the decline in industrial equipment sales
 resulting from the deteriorating conditions in the North American industrial
 economy.
     In Europe, sales for the 2001 first quarter totaled $18.2 million, down
 10.3% from $20.3 million in the 2000 first quarter.  Adjusted to exclude
 negative foreign currency exchange effects, European sales for the 2001 first
 quarter declined 4.4% compared with the 2000 first quarter.  The decline was
 primarily the result of the operational issues previously noted.
     In Tennant's other international markets, sales for the 2001 first quarter
 fell 1.8% to $11.2 million compared with $11.4 million in the 2000 first
 quarter.  Adjusted to exclude negative foreign currency exchange effects, 2001
 first quarter sales to export markets grew 2.6% despite a downturn in sales to
 Japan, where economic conditions remain difficult.
     Consolidated orders for the 2001 first quarter fell 10% compared with the
 2000 first quarter.  Order backlog at March 31, 2001, totaled $11 million
 compared to $7 million at December 31, 2000, and $20 million at March 31,
 2000.
     "While we are taking the steps necessary to respond to the difficult
 business conditions we face in the near term, we are also strengthening
 Tennant for the long term," said Dolan.  "We continue to invest in new product
 development and in opportunities, including capital projects, that offer the
 potential to improve efficiency, shorten cycle times, reduce costs and improve
 our overall competitive position.  We are a financially sound company, well
 positioned to weather the current downturn and emerge from it as an even
 stronger business."
 
     Company Profile
     Tennant is a world-leading manufacturer of nonresidential floor
 maintenance and outdoor cleaning equipment, floor coatings and related
 offerings.  Its products include scrubbers, sweepers, extractors, buffers and
 other specialized floor cleaning equipment and supplies, plus a complete line
 of industrial floor coatings.  Tennant's stock is traded on the New York Stock
 Exchange under the symbol TNC.  For more information about Tennant and to
 register to receive emailed notification of company news releases, visit
 http://www.tennantco.com .
     Tennant will host a conference call to discuss its first quarter and full
 year results today, April 24, 2001, at 10:00 a.m. Central Time.  The
 conference call will be available via webcast on the investor portion of
 Tennant's Web site.  To listen to the call live on the Web, go to
 www.tennantco.com at least 15 minutes before the scheduled start time and, if
 necessary, download and install audio software.  A taped replay of the
 conference call will be available at http://www.tennantco.com for about two
 weeks after the call.
     This news release includes forward-looking statements involving risks and
 uncertainties.  These include factors that affect all businesses operating in
 a global market as well as matters specific to the company and the markets it
 serves.  Particular risks and uncertainties currently facing Tennant include:
 the ability to implement its plan to increase worldwide manufacturing
 efficiencies; political and economic uncertainty throughout the world;
 inflationary pressures; the potential for increased competition in the
 company's businesses from competitors that have substantial financial
 resources; the potential for soft markets in certain regions, including North
 America, Asia, Latin America and Europe; the relative strength of the U.S.
 dollar, which affects the cost of the company's products sold internationally;
 the ability to successfully implement the SAP enterprise resource planning
 system; and the company's plan for growth.  For additional information about
 factors that could materially affect Tennant's results, please see the
 company's Securities and Exchange Commission filings.
 
 
                        TENNANT COMPANY AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
 
     (In millions, except per share data)  Three Months Ended March 31
                                                 2001                 2000
                                    Before
                                Restructuring Restructuring Reported Reported
                                   Charges       Charges
     Net sales                      $103.7          --      $103.7   $108.4
     Cost of sales                    64.0          --        64.0     64.4
     Selling and administrative
      expenses                        34.8          --        34.8     35.4
     Restructuring charges              --         5.1         5.1       --
 
     Profit from operations            4.9        (5.1)        (.2)     8.6
       Operating margin                4.7%                    (.2%)    7.9%
 
     Interest income (expense), net     .2          --          .2       .1
     Other income (expense)             .3          --          .3      (.1)
 
     Earnings before income taxes      5.4        (5.1)         .3      8.6
     Income tax expense (benefit)      1.9        (1.8)         .1      3.1
 
     Net earnings                     $3.5       $(3.3)        $.2     $5.5
 
     Basic EPS                        $.39       $(.37)       $.02     $.60
 
     Diluted EPS                      $.38       $(.36)       $.02     $.60
 
     Average number of shares
      (diluted)                       9.24                    9.24     9.16
 
 
                        TENNANT COMPANY AND SUBSIDIARIES
               CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited)
 
     (In millions)                                  2001           2000
                                                  Mar. 31    Dec. 31   Mar. 31
     ASSETS
     Cash and cash equivalents                     $16.7      $21.5      $4.7
     Net receivables                                88.0       88.3      88.4
     Inventories                                    54.9       51.9      51.7
     Deferred income taxes and other current
      assets                                         9.8        9.9      12.7
       Total current assets                        169.4      171.6     157.5
 
     Net property, plant, and equipment             69.0       66.7      65.1
     Deferred income taxes, long-term portion        3.9        4.3       6.2
     Intangible assets                              17.6       17.7      19.0
     Other assets                                    3.3        3.0       1.1
 
       Total assets                               $263.2     $263.3    $248.9
 
                                                    2001            2000
                                                  Mar. 31    Dec. 31   Mar. 31
     LIABILITIES AND SHAREHOLDERS' EQUITY
     Current debt                                  $14.1      $12.6      $6.5
     Accounts payable                               18.8       17.8      18.7
     Accrued expenses                               32.5       36.9      37.3
 
       Total current liabilities                    65.4       67.3      62.5
 
     Long-term debt                                 10.0       10.0      15.7
     Long-term employee benefits                    31.4       31.1      31.1
     Shareholders' equity                          156.4      154.9     139.6
       Total liabilities and shareholders'
        equity                                    $263.2     $263.3    $248.9
 
 
     GEOGRAPHICAL NET SALES(a) (Unaudited)
     (In millions)                        Three Months Ended March 31
                                       2001            2000         % of
                                                                   Change
     North America                     $74.3           $76.7        (3.1)%
     Europe                             18.2            20.3       (10.3)%
     Other International                11.2            11.4        (1.8)%
 
     Total                            $103.7          $108.4        (4.3)%
 
     (a) Net of intercompany sales
 
 
                        TENNANT COMPANY AND SUBSIDIARIES
          CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
 
     (In millions)                                       Three Months Ended
                                                               March 31
                                                         2001           2000
     CASH FLOWS RELATED TO OPERATING ACTIVITIES:
     Net earnings                                        $0.2           $5.5
 
     Adjustments to net earnings to arrive at
      operating cash flows:
       Depreciation and amortization                      5.2            4.5
       Deferred tax expense (benefit)                     0.3           (0.1)
       Changes in operating assets and liabilities       (3.4)          (8.1)
       Other, net                                         0.4            0.7
         Net cash flows related to operating activities   2.7            2.5
 
     CASH FLOWS RELATED TO INVESTING ACTIVITIES:
       Acquisition of property, plant and equipment      (7.0)          (3.4)
       Proceeds from disposals of property, plant and
        equipment                                         0.3            0.1
       Other, net                                          --           (1.0)
         Net cash flows related to investing activities  (6.7)          (4.3)
 
     CASH FLOWS RELATED TO FINANCING ACTIVITIES:
       Net changes in short-term borrowings               1.0           (1.5)
       Issuance (payments) of long-term borrowings         --           (5.0)
       Proceeds from employee stock issuances             0.3            0.3
       Purchase of common stock                          (1.2)          (1.4)
       Dividends to shareholders                         (1.8)          (1.7)
       Principal payment from ESOP                        0.8            0.7
         Net cash flows related to financing activities  (0.9)          (8.6)
 
     Effect of exchange rates on cash                     0.1            0.2
 
     Net increase (decrease) in cash and cash
      equivalents                                        (4.8)         (10.2)
 
     Cash and cash equivalents at beginning of year      21.5           14.9
 
     Cash and cash equivalents at end of period         $16.7           $4.7
 
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 SOURCE  Tennant Company