Blount International Inc. on Thursday said third-quarter sales grew 31 percent, but its profits were hampered by increased acquisition expenses.
The Portland-based manufacturer of saw chain and other replacement parts and equipment for outdoor markets (NYSE: BLT) reported net income of $10.8 million, or 22 cents per share, on $212.9 million in sales, compared to earnings of $15.6 million, or 32 cents per share, on $162.6 million in sales a year earlier.
In September, Blount completed its $185 million acquisition of Oregon, Ill.-based Woods Equipment Co . in a move that strengthens its position in farm, ranch and agriculture markets.
While the deal boosted third-quarter sales by $30.2 million, it reduced the quarter’s operating profit by $700,000. The quarter also included $2.5 million more in incremental acquisition costs compared to the third quarter.
In addition to Woods, Blount this year also acquired FinalameSA and its wholly-owned subsidiary, PBL SAS -- a manufacturer of lawnmower blades and agricultural cutting parts with operations in in Civray, France, and Queretaro, Mexico, in a $28 million deal split between cash and debt.
Blount CEO Josh Collins said the company said both the Woods and PBL deal provide ample opportunity “for growth, scale and capacity” in the company’s farm, rank, agriculture, forestry, lawn and garden businesses.
“We accomplished a great deal in the third quarter this year,” Collins said in a news release.
Blount said it expects to end the fiscal year with operating income of between $100 million and $103 million and sales of between $825 million and $835 million.
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