Blount International Inc. (parent Co of SpeeCo, Oregon Chain and Woods Equipment) said its fourth-quarter profit dropped 23 percent, as rising costs offset gains from higher revenue.
The company also said Tuesday that it expects revenue to rise in 2012 to between $1.02 billion and $1.06 billion, the mid-range of which would be a 25 percent increase over last year.
The company makes equipment for forestry companies, farmers and consumers.
For the quarter ended Dec. 31, the company reported net income of $9.5 million, or 19 cents per share, compared with $12.3 million, or 25 cents per share, in the prior-year period.
Revenue for the quarter rose 38 percent to $236.5 million, from $171 million in the 2010 fourth quarter.
But costs were also higher. The company said its cost of sales in the 45 percent to $170.5 million.
Blount International said it expects revenue growth in 2012 to be driven by its farm and forestry division, which makes heavy duty equipment for loggers and agriculture. The company said it expects revenue in that division to grow between 8 percent and 11 percent over 2011. Revenue at the company's lawn and garden division was forecast to grow between 4 percent and 7 percent for the year.
Some of the revenue increase will come from an expected 1-to-3 percent price increase during 2012.
For the full year of 2011, the company reported net income of $49.7 million, or $1.01 per share, compared with $47.2 million, or 97 cents per share, in 2010.
Revenue for the year was up 36 percent, to $831.6 million, from $611.5 million in 2010.
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