S T E A D Y P R O G R E S S G L O B A L S T R A T E G Y
Columbus McKinnon Corporation
2005 annual report
cmco
fiscal 2005
▲ SALES +16% ▲ NET INCOME +1301%
millions
GROWING GLOBAL SALES
2005 FINANCIAL SUMMARY
$600
500
400
300
200
100
0
millions
$600
500
400
300
200
100
0
$586.2
24.4%
$480.0
29.4%
$453.3
$444.6
31.1%
35.7%
$514.8
37.2%
fy 01
fy 02
fy 03
fy 04
fy 05
■ DOMESTIC SALES ■ INTERNATIONAL SALES
STRONG OPERATING LEVERAGE
27.2%
25.1%
23.7%
23.6%
$586.2
$480.0
$453.3
$444.6
fy 02
fy 01
fy 04
■ NET SALES –O– GROSS MARGIN
fy 03
24.5%
$514.8
fy 05
25%
20%
15%
10%
5%
0%
millions
CONTINUED DEBT REDUCTION
$500
400
300
200
100
0
$410.1
$350.4
$316.3
$293.4
$270.9
fy 01
fy 02
fy 03
fy 04
fy 05
TOTAL DEBT
(In thousands, except per share,
percent change, margin and ratio data)
INCOME STATEMENT DATA
net sales
restructuring charges
amortization of intangibles
income from operations
net income
per diluted share
MARGIN DATA
gross margin
operating income margin
OTHER DATA
cash flow from operating
activities per share
revenues per employee
capital expenditures
inventory turns
working capital ⁄ sales
BALANCE SHEET DATA
total assets
total liabilities
total debt
total shareholders’ equity
debt ⁄ capitalization
Data as of or for the year ended March 31,
2005
2004
% change
$514,752
910
312
40,665
16,710
1.13
$444,591
1,239
383
29,867
1,193
0.08
15.8
-26.6
-18.5
36.2
1,300.7
1,312.5
24.5%
7.9%
$1.16
188.0
5,925
5.01
20.2%
23.6%
6.7%
$1.81
164.0
3,619
4.92
22.0%
$480,871
399,104
270,941
81,767
76.8%
$473,363
410,385
293,410
62,978
82.3%
-35.9
14.6
63.7
1.6
-2.7
-7.7
29.8
TABLE OF CONTENTS
COMPANY PROFILE
Letter to Shareholders
Investor FAQs
Major Products
SEC Form 10K Document
1
2
4
5
Corporate Information/
Board of Directors
and Corporate Officers
Inside
Back Cover
Columbus McKinnon Corporation (Nasdaq: CMCO) is a leading designer and manufacturer of
material handling products, systems and services which lift, secure, position and move material
ergonomically, safely, precisely and efficiently. Headquartered in Amherst, New York, Columbus
McKinnon’s major products include hoists, cranes, chain and forged attachments. The Company’s
products serve a wide variety of commercial and industrial applications that require the safety and
quality provided by Columbus McKinnon’s superior product design and engineering know-how.
STRATEGY AND FOCUS
Our strategy is to leverage our superior material handling design and engineering know-how to
provide differentiated products, systems and services to lift, secure, position and move material
ergonomically, safely, precisely, and efficiently. Our focus is on industrial and commercial applica-
tions with the highest potential for growing market share in countries that offer the greatest volume
and profit potential.
▲
DEBT/CAPITALIZATION –550 ▲ STOCK PRICE +78%
basis points
DEAR SHAREHOLDERS:
Columbus McKinnon’s performance in fiscal 2005 reflects our steady
progress as we returned to a top-line growth mode, significantly
increased profitability, and continued to improve our financial condi-
tion. The Company’s net sales and profitability rose to the highest level
in four years while debt declined to the lowest level in eight years. Our
results in fiscal 2005 benefited from a recovery in the industrial economy
and our significant operating leverage, supported by our successful strat-
egy to maintain our leading North American market positions, expand
globally, develop new products and reduce operating costs and debt.
Fiscal 2005 net sales were $514.8 million, a $70.2 million or 15.8%
increase from $444.6 million last year. Net income for fiscal 2005 was
$16.7 million, or $1.13 per diluted share, a $15.5 million and $1.05
per share improvement from net income of $1.2 million or $0.08 per
diluted share in fiscal 2004. Net income in fiscal 2005 included a
favorable effect of $3.7 million, or $.25 per share, from the sale of
underutilized property.
Higher volumes and a lower cost base also produced significant
improvement in every major performance metric for the year. The gross
margin for 2005 increased to 24.5%, up 90 basis points from last year,
with margins improving in both the Products and Solutions segments.
Income from operations increased 36.2% in fiscal 2005, while income
from operations as a percent of sales improved 120 basis points to 7.9%.
Our steady progress is further reflected in an improvement in
inventory turns to 5.7 times in the fiscal 2005 fourth quarter from 5.3
times and 4.6 times in the fourth quarters of fiscal 2004 and 2003.
Working capital as a percent of revenue improved to 20.2% at 2005
fiscal year-end from 22.0% and 24.7% at year-end fiscal 2004 and 2003.
We continue to make steady progress in de-levering our balance sheet.
Total debt declined by $22.5 million, or 7.7% in the year, to $270.9
million at year end, a decrease of $145.5 million over the last five years.
This year’s debt reduction and increased earnings produced a 550 basis
point improvement in our debt-to-total capitalization ratio to 76.8%.
We are also making steady progress on our major objectives to grow the
business. International sales increased 20% to $191 million in fiscal
2005 to 37% of sales. Since becoming a public company nine years ago,
international sales have grown at a 24.3% compound annual growth
rate. With established and expanding manufacturing, sales and service
operations in global markets, we have a strong platform for future
growth of international sales with 26 manufacturing facilities in eight
countries, 28 sales and service offices in 11 countries and nine ware-
house facilities in five countries. We are successfully maintaining strong
domestic market share with significant leading North American market
positions in hoists, lifting and sling chain, and forged attachments.
Columbus McKinnon also continues to have a large and diverse North
American customer base numbering over 20,000 distributors and end-
user customers in fiscal 2005.
In February 2005, Derwin Gilbreath joined Columbus McKinnon in the
newly created position of Vice President and Chief Operating Officer.
Derwin has more than 30 years of experience in industrial operations
and management with a very strong background in implementing lean
manufacturing, and significant experience managing large global man-
ufacturing operations and leading sales organizations that sell through
a variety of distribution channels. He is a great fit for Columbus
McKinnon as we transition from recovery to growth.
Linda Goodspeed, Executive Vice President and Chief Technology Officer
of Lennox International, Inc., and Stephen Rabinowitz, the retired
Chairman and Chief Executive Officer of General Cable Corporation,
joined the Columbus McKinnon Board in October 2004.With experience
as senior executives of large multinational manufacturers, Linda and Steve
have already proven to be outstanding additions to our Board.
On the corporate governance front, our initial Sarbanes-Oxley Section 404
audit was completed successfully with no material weaknesses identified.
Columbus McKinnon’s initial external costs to implement Section 404
were $1.4 million in fiscal 2005, and we are targeting a minimum
reduction of 50% for fiscal 2006 Sarbanes-Oxley expenses.
Going into fiscal 2006, we are very optimistic about Columbus
McKinnon’s future prospects. Of course, like many other industrial
manufacturers, we are challenged by increasing competition in all of
our markets, rising employee health costs and being a business that is
tied to GDP growth and industrial capacity utilization. That said, the
global market opportunity is significant for Columbus McKinnon with
multiple new revenue opportunities through new products and
customer segments and further expansion in global markets. We have
sustainable operating leverage as we grow sales on a lower cost base and
continue to reduce costs through lean manufacturing, debt and inven-
tory reductions and increased supply chain efficiencies. Our focus on
generating cash for debt reduction has significantly improved
Columbus McKinnon’s financial condition and flexibility. Higher
volumes and increased profitability, along with plans to enhance
working capital management, position us to further increase cash flow
from operations and continue to improve our financial position.
Our strategy would not be successful without the continued hard work
and commitment of the 3,061 Associates of Columbus McKinnon. Their
efforts and support are greatly appreciated and critical to this year’s
robust turnaround and our continued success. Everyone at Columbus
McKinnon is very pleased with the significant improvements in our
results and financial condition, and their favorable effect on our share
price over the last year. But our work is far from done. There is significant
potential for further improvement on all fronts, and our global strategy
positions us very well to continue making steady progress in growing our
business, strengthening our financial performance and position, and
creating new value for the shareholders of Columbus McKinnon.
Timothy T. Tevens, President and Chief Executive Officer
1
Investor FAQs
Tim Tevens
PRESIDENT AND CHIEF EXECUTIVE OFFICER
Q: Do you see this year’s top-line recovery continuing,and what are
you doing to further expand revenue growth?
a strong #1 in North America and I think we can better leverage our
reputation for quality and reliability across the rest of the world.
A: Based on recent market conditions, we are pretty comfortable that
our sales growth will continue over the next year. We held market share
in our traditional North American business throughout the industrial
recession and have seen a strong resurgence over the last year. Global
markets continue to be a major area of opportunity driving CM’s
revenue growth with international sales increasing 20% in fiscal 2005.
New products are also contributing to top line growth with over 100
new and cross-branded products developed in the last three years,
which represent about $30 million in
annual revenue. Across the board, trends
in bookings coming into fiscal 2006 are
robust and we also think that our global
expansion and new products initiatives
can extend top line growth beyond this
year. Because of our significant operating
leverage, incremental volume also has a
very favorable impact on Columbus
McKinnon’s profitability–in fiscal 2005
income from operations increased 36%
on 16% growth in sales.
Q: Can you update us on your progress in further expanding in
global markets?
A: CM’s global expansion initiatives put us in an excellent position to
drive future growth. International sales increased to 37% of total sales
this year. That’s up from 24% of sales five years ago. We eventually
would like to get to a 50% U.S./50% international sales mix and feel
we now have the foundation in place to get us there. Columbus
McKinnon already has a strong established manufacturing presence
in China and Mexico, close to the global markets where the greatest
new growth is occurring. From our Mexican base, we have built a
strong foothold in Latin America, and notably in Brazil, which is a
rapidly growing market. We recently opened a sales office in Hungary
to access the eastern European market which is rapidly developing.
We have really just begun to tap into the potential of the Asian markets.
Historically we manufactured lower end, less engineered products in
China for import into Europe and the U.S. We recently began selling
products made there into China and other Asian markets. With four
manufacturing plants in China, we are also looking to make further
inroads into lower-end manufacturing and consumer segments globally
by developing more products targeted to these markets that we can
make in China and price very competitively worldwide.
Derwin Gilbreath
VICE PRESIDENT AND CHIEF OPERATING OFFICER
Q: As a newcomer to Columbus McKinnon, what do you see that
you like and what would you like to change?
A: Columbus McKinnon has great people, great customer relation-
ships, great products and great engineering. A company with all of
these attributes has a terrific foundation to grow its business. We are
To do that, we need to spend more time in Asia, Latin America and
Europe because that’s where our best opportunities are to grow
volumes and share. The potential of these markets is huge, and we
need to continue to expand our marketing programs and sales
coverage in these markets.
Globally, the Yale brand is very strong in Europe and Asia-Pacific,
but we also need to boost awareness and sales of other CM brands
in these markets. Our best start for growth in the Asia-Pacific
markets is the more sophisticated manufacturing operations
because that is the market our current line fits best. We also have a
well-established manufacturing presence in China. Many multina-
tional manufacturers building plants in China prefer buying
product from U.S. companies with operations in China because
they can offer proximity, along with familiar quality and reliability.
We have a few underperforming businesses with significant potential
for margin improvement which, as their profitability improves, will
help boost our overall profitability. Increased sales and marketing,
along with more sophisticated pricing research and analysis, can drive
further top line growth. We also think we can get more costs out of our
value stream. Columbus McKinnon has done a great job implementing
lean manufacturing, but there are still significant opportunities to make
new improvements in productivity and profitability through lean.
Q: How are you defending your leading presence in North America
against foreign competition?
A: We have a great record of defending our leading North American
market positions against Asian competitors because of our excellent
channel partner relationships in North America. Distribution, along
with superior product quality, are major strengths of Columbus
McKinnon. We also have a significant manufacturing presence in
China and Mexico, and an established repurchase program, which
helps us competitively develop and offer lower-end, less engineered
products to both domestic and international markets. We stand
behind all of our products with CM engineering and technical and
service support. There is also much more we can do from a lean
perspective to take additional costs out of production and ensure we
remain competitive in North America and other global markets.
Q: What impact is the higher cost of steel having on your business?
A: Overall, steel represents about 10% of our cost of goods sold, so
when the price of steel began to rise rapidly last year, we acted quickly
and instituted a steel surcharge policy, along with price increases, to
keep
neutral.
Customer acceptance of this policy
was good and it did not have a
significant impact on sales in our
major product groups. Now that
steel costs have stabilized, we
recently incorporated surcharges
into our base prices.
us margin
2
Bob Friedl
VICE PRESIDENT, FINANCE
AND CHIEF FINANCIAL OFFICER
Karen Howard
VICE PRESIDENT AND TREASURER
Q: What progress is being made
in de-levering your balance sheet?
What are your objectives for
further improvements in your capital structure?
A: In fiscal 2005, we improved our debt to total capitalization by 550
basis points to 76.8%. The $22.5 million debt reduction in 2005 was
driven by $17.2 million of net cash provided by operating activities,
and $7.1 million from sales of underutilized property. Over the last
five fiscal years, CM paid down debt by $145.5 million through strong
cash management, debt restructuring and facility rationalization.
That is a very significant accomplishment considering the extent of
the U.S. industrial downturn, the 27% decline in our sales from fiscal
2000 through fiscal 2004 and that the economy and our sales have
only begun to recover in the last year and a half. In fiscal 2006, we are
targeting $15 million to $20 million in debt reduction.
Our longer-range goal is 50% debt to total capitalization, and a senior
subordinated debt rating of BB or better. We think it is achievable over
the next three to five years for several reasons. Our continued growth in
sales and significant operating leverage and minimal capital expendi-
ture requirements, along with additional opportunities for property
sales and enhancing working capital utilization, is driving increased
cash flow to fund further debt reduction. At the same time, these
earnings will be enhanced by the utilization of U.S. federal net operat-
ing loss carry forwards and will continue to build shareholder’s equity.
As we continue to pay down debt, it puts us in a better position to re-
evaluate our capital structure and potentially convert higher cost debt
to lower cost debt while enhancing our ability to access equity markets.
Q: What are the short-term and the long-term impacts of Columbus
McKinnon’s tax benefits?
A: Through a valuation allowance established in fiscal 2004, we fully
reserved the deferred tax benefit associated with the carry forward of
a $108 million U.S. federal income tax loss. In fiscal 2005 we began to
realize the cash and income statement benefits of utilizing this carry
forward since the Company pays no regular U.S. federal income taxes
for its U.S. entities and records no regular federal income tax expense.
These carry forward losses will expire in fiscal 2023 and 2024.
Assuming a normal U.S. federal tax rate of 35%, these benefits had a
favorable effect of $0.28 cents on earnings per share in fiscal 2005 and
$4.2 million on cash flow. Columbus McKinnon’s effective tax rate for
fiscal 2005 was unusually low at 12% due to the use of some of these
loss carry forwards and the tax benefits of a federal tax refund. At
year-end about $98.0 million in U.S. federal net operating loss carry
forwards remained for future use. Based on their magnitude and
duration, we expect these tax benefits will have a favorable effect on
earnings and cash flow for some time with increased utilization as we
further reduce deductible interest expense and increase U.S.-generated
taxable income.
Q: How have you improved financial flexibility in fiscal 2005?
A: This year’s significant growth in sales, profitability, inventory turns
and days sales outstanding, along with underutilized property sales,
allowed us to generate cash and reduce debt. That reduction included
the repurchase of $19.6 million of our 2008 Notes, which carry an
8 1/2% coupon. Annual interest expense was reduced by over 4% to
$27.6 million for the year and is down almost $9 million from a peak
of $36.3 million in fiscal 2001. Following year end, we amended our
bank credit facility to extend our revolver commitment from $50
million to $65 million, with approval to use up to $30 million for
repurchase of 2008 Notes, providing us further capital structure
flexibility. Lower interest costs, along with approximately $13.5
million in annual fixed cost reductions since fiscal 2001 from our
facility rationalizations and lean manufacturing, are providing
substantial operating leverage which we expect to continue.
These improvements contributed to rating
upgrades from S&P and Moody’s in 2005,
a reduction in borrowing costs under our
revolving credit line and flexibility to
further improve our capital structure. All
of this reflects the greater comfort of the
rating agencies and our lenders with our
business and outlook, and greatly
improves our financial flexibility, while
providing a stronger platform for making
further improvements in Columbus
McKinnon’s financial condition.
3
Q: Are there opportunities to make further reductions in your
working capital utilization?
A: Over the last few years, we have brought working capital as a percent
of sales down from the mid-20s to the low-20s which is in line with
where average U.S. industrial manufacturers are. The major driver of
this improvement has been the inventory reduction that comes from
lean manufacturing and its one-piece flow process which reduces
inventory needs. Lean has helped us increase inventory turns from
four times three years ago to annualized turns of nearly six times in
the fourth quarter of fiscal 2005.
We are now focusing on further reductions in working capital utiliza-
tion because improvements have such a powerful impact on cash
generation. Currently a one percent reduction in working capital as a
percent of sales generates approximately $5 million in incremental
cash flow. Ultimately, we’d like to get to working capital utilization to
the 15% level and inventory turns to 7-8 times, which is where some
of the very best industrial manufacturers are. This year we are
undertaking a comprehensive initiative evaluating the major compo-
nents of our working capital needs–inventories, receivables, and
payables–to drive us toward a more optimal working capital utiliza-
tion level over time. By benchmarking against other companies and
reviewing the practices of those companies with world-class working
capital utilization, we will identify opportunities for implementing
best practices at Columbus McKinnon.
MAJOR PRODUCTS
81 PERCENT OF FISCAL 2005 SALES
COLUMBUS MCKINNON IS NORTH AMERICA’S LARGEST PRODUCER OF HOISTS,
HIGHER GRADE CHAIN AND FORGED ATTACHMENTS AND ONE OF THE
LARGEST CRANE BUILDERS AND SERVICE PROVIDERS IN THE UNITED STATES.
HOISTS
Products: Electric chain hoists, electric wire rope
hoists, hand-operated hoists, lever tools, hoist
trolleys, air balancers and air-powered hoists.
tooling,
Custom-designed, below-the-hook
clamps, pallet trucks and textile strappings.
Brands: Yale, CM, Coffing, Shaw-Box, Budgit,
Chester, Little Mule, Camlok, Tugit, Tigrip, Cady
Distribution and Service: Over 20,000 distributors in commercial and
consumer channels for both domestic and international markets. A leading
supplier to industrial catalog houses. Service for hoist products is provided
through over 350 hoist parts, product, service and repair centers. Columbus
McKinnon’s CraneMart program supports over 50 independent crane
builders covering 89 markets with best pricing, parts distribution rights,
dedicated technical support, shared resources and its TechLink automated
crane and hoist inspection service.
CHAIN & FORGED ATTACHMENTS
Products: Alloy chain (used in overhead lifting,
pulling and restraining applications), carbon steel
welded-link chain (used for load securement and
other non-overhead lifting applications). Forged
products and rigging accessories, including a
complete line of alloy and carbon steel closed-die
forged attachments used in virtually all types of
chain and wire rope rigging applications in a variety of industries.
Columbus McKinnon also produces custom application forgings for a
number of OEM customers.
Brands: CM, Big Orange, Hammerlok, Herc-Alloy, Dixie Industries,
Midland Forge, Durbin Durco, AgWorks, ColorLinks
Distribution and Service: Industrial distributors, hardware distributors
and mass merchandiser outlets. Aftermarket service is provided to product
end-users through a network of independent distributors, including 13
chain service centers.
End-user Markets: General manufacturing, marine, agricultural,
automotive parts manufacturing, entertainment, construction, mining,
crane building, transportation,
logging, oil and gas, primary metals
production, steel processing and consumer.
4
HOIST PRODUCT LINE PERFORMANCE METRICS
Metric
sales
percentage of total sales
u.s. #1 market share*
lean manufacturing
rapid improvement events
inventories
FYE 2005
FYE 2004
$227.8 million $197.4 million
44%
61%
44%
61%
109
$39.5 million
77
$34.3 million
*Powered hoists, manual hoists and trolleys comprising 52% of both
fiscal 2005 and fiscal 2004 hoist sales.
End-user Markets: General manufacturing, production industries,
marine, power generation and distribution, automotive parts manufac-
turing, entertainment, construction, mining, crane building, logging, oil
and gas production, pulp and paper, metals production, steel processing,
warehousing and distribution
CHAIN AND FORGED ATTACHMENTS
PRODUCT LINE PERFORMANCE METRICS
Metric
sales
percentage of total sales
u.s. #1 market share
chain product*
u.s. #1 market share
forged attachments**
lean manufacturing
rapid improvement events
inventories
FYE 2005
$127.3 million
25%
FYE 2004
$110.7 million
25%
45%
49%
48%
46%
52
$18.5 million
61
$16.5 million
*Lifting and sling chain, comprising 32% and 34% of fiscal 2005 and
fiscal 2004 chain sales, respectively.
** Selected categories comprising 58% and 53% of our fiscal 2005 and
fiscal 2004 forged attachments sales, respectively.
INDUSTRIAL CRANES
Products: Industrial crane systems and light rail
systems using overhead bridge, jib, patented track
and gantry cranes with capacities up to 100 tons.
Services: Columbus McKinnon’s subsidiary,
Crane Equipment & Service, Inc. (CES), provides
OSHA-mandated inspections, installation, service,
repair, preventive maintenance, and replacement
parts. CES is one of the largest crane service providers in the United States
with approximately 85 service technicians in 24 locations.
Brands: Abell-Howe, Gaffey, Larco, WECO (Washington Equipment)
Distribution and Service: Large contractors and end users
End-user Markets: General manufacturing, marine, agricultural,
construction, crane building, transportation, pulp and paper, primary
metals production, steel processing, warehousing and oil exploration.
CRANE PRODUCT LINE PERFORMANCE METRICS
Metric
sales
percentage of total sales
backlog
inventories
FYE 2005
$62.5 million
12%
$13.2 million
$7.2 million
FYE 2004
$53.3 million
12%
$16.3 million
$7.1 million
Major 2005 Projects:
Project: Offshore drilling platform-Angola, Africa
Products: Two 60 metric ton explosion-proof cranes
One 10 metric ton explosion-proof crane
Eight 1, 2 and 3 metric ton explosion-proof jib cranes
40 Chester explosion-proof hoists, 1 to 20 metric ton capacities
Project: Rail terminal-Peoples Republic of China
Products: Ten explosion-proof Yale Hoists, 1000 kg capacity
CORPORATE INFORMATION
CORPORATE INFORMATION
Common Stock
Columbus McKinnon’s common stock is traded on Nasdaq under
the symbol CMCO. As of June 23, 2005, there were 627 shareholders
of record of the Company’s common stock. In addition, 1,208
Columbus McKinnon employees owned shares through the
Company ESOP. Approximately 2,500 additional shareholders held
shares in “street name.”
According to the March 31, 2005 SEC filings, approximately 50
institutional investors own 56.5% of Columbus McKinnon’s
outstanding shares.
Corporate Headquarters
Columbus McKinnon Corporation
140 John James Audubon Parkway
Amherst, NY 14228-1197
Telephone: (716) 689-5400
Independent Auditors
Ernst & Young LLP
50 Fountain Plaza, 14th floor
Buffalo, NY 14202-2297
Annual Shareholders Meeting
August 15, 2005; 10:00 am
University Inn & Conference Center
2402 North Forest Road
Amherst, NY 14226
Transfer Agent
Please direct questions about lost certificates, change of address
and consolidation of accounts to the Company’s transfer agent
and registrar:
American Stock Transfer & Trust Company
59 Maiden Lane, Plaza Level
New York, NY 10038
(800) 937-5449
(718) 921-8200
www.amstock.com
Investor Relations
Robert R. Friedl
Vice President, Finance and Chief Financial Officer
Phone: (716) 689-5479
E-mail: bob.friedl@cmworks.com
Investor information is available on the Company’s web site:
www.cmworks.com
The following are trademarks of Columbus McKinnon Corporation registered in the U.S.
Patent and Trademark Office: CM, Big Orange, Budgit, Cady, Coffing, ColorLinks,
Hammerlok, Herc-Alloy, Little Mule, Shaw-Box, Tigrip, Tugit, Yale
The following are trademarks of Columbus McKinnon Corporation: Abell-Howe,
AgWorks, Camlok, CraneMart, Gaffey, LARCO, TechLink, WECO
Forward-looking Information
The Columbus McKinnon annual report contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of 1995. Such statements
include, but are not limited to, statements concerning future revenue and earnings,
involve known and unknown risks, uncertainties and other factors that could cause the
actual results of the Company to differ materially from the results expressed or implied
by such statements, including general economic and business conditions, conditions
affecting the industries served by the Company and its subsidiaries, conditions affecting
the Company’s customers and suppliers, competitor responses to the Company’s
products and services, the overall market acceptance of such products and services and
other factors disclosed in the Company’s periodic reports filed with the Securities and
Exchange Commission. The Company assumes no obligation to update the forward-
looking information contained in this report.
BOARD OF DIRECTORS
BOARD OF DIRECTORS
Herbert P. Ladds, Jr. has been a Director of the Company since
1973 and was elected Chairman of the Board of Directors in January
1998. Mr. Ladds served as Chief Executive Officer of the Company
from 1986 until his retirement in July 1998. Mr. Ladds was President
of the Company from 1982 until January 1998, and Executive Vice
President from 1981 to 1982 and Vice President - Sales & Marketing
from 1971 to 1980. Mr. Ladds is also a director of Utica Mutual
Insurance Company and Utica Life Insurance Company.
Timothy T. Tevens was elected President and a Director of the
Company in January 1998 and assumed the duties of Chief Executive
Officer in July 1998. From May 1991 to January 1998 he served as Vice
President - Information Services and was also elected Chief
Operating Officer of the Company in October 1996. From 1980 to
1991, Mr. Tevens was employed by Ernst & Young LLP in various
management consulting capacities.
Carlos Pascual has been a Director of the Company since 1998. Mr.
Pascual currently serves as Chairman of the Board of Directors of
Xerox de Espana S.A. (Spain). From January 2000 through December
2003, Mr. Pascual was Executive Vice President and President of
Developing Markets Operations for Xerox. From January 1999 to
January 2000, Mr. Pascual served as Deputy Executive Officer of
Xerox’s Industry Solutions Operations. From August 1995 to January
1999, Mr. Pascual served as President of Xerox Corporation’s United
States Customer Operations. Prior thereto, he has served in various
capacities with Xerox Corporation. He is Chairman of the Company’s
Compensation and Succession Committee and is also a member of
the Company’s Audit Committee and Corporate Governance and
Nomination Committee.
Richard H. Fleming was appointed a Director of the Company in
March 1999. In February 1999, Mr. Fleming was appointed Executive
Vice President and Chief Financial Officer of USG Corporation. Prior
thereto, Mr. Fleming served USG Corporation in various executive
financial capacities, including Senior Vice President and Chief
Financial Officer from January 1995 to February 1999 and Vice
President and Chief Financial Officer from January 1994 to January
1995. Mr. Fleming also serves as a member of the Board of Directors
for several non-for-profit entities including UCAN, the Child Welfare
League of America and Chicago United. He is the Chairman of the
the
Company’s Audit Committee and is also a member of
Compensation and Succession Committee and the Corporate
Governance and Nomination Committee.
CORPORATE OFFICERS
Timothy T. Tevens, President and Chief Executive Officer
Robert R. Friedl, Vice President, Finance and Chief Financial Officer
Derwin R. Gilbreath, Vice President and Chief Operating Officer
Timothy R. Harvey, Corporate Secretary and General Counsel
Karen L. Howard, Vice President and Treasurer
Ned T. Librock, Vice President, Sales
Robert H. Myers, Jr., Vice President, Human Resources
Joseph J. Owen, Vice President and Hoist Group Leader
Wallace W. Creek was appointed a Director of the Company in
January 2003. From December 2002 through June 2004, Mr. Creek
served as Senior Vice President of Finance for Collins & Aikman, a
leading manufacturer of automotive components. Prior to that, Mr.
Creek served as Controller of the General Motors Corporation from
1992 to 2002 and held several executive positions in finance at
General Motors over a 43-year career. He is Chairman of the
Company’s Corporate Governance and Nomination Committee and
also serves on the Audit Committee and the Compensation and
Succession Committee.
Ernest R. Verebelyi was appointed a Director of the Company in
January 2003. Mr. Verebelyi retired from Terex Corporation, a global
diversified equipment manufacturer, in October 2002 where he held
the position of Group President. Prior to joining Terex in 1998, he
held executive, general management and operating positions at
General Signal Corporation, Emerson, Hussmann Corporation and
General Electric. Mr. Verebelyi also serves as a director of both The
Nash Engineering Company of Trumbull, Connecticut and Fairfield
Manufacturing Company, headquartered in Lafayette, Indiana. Mr.
Verebelyi serves on the Company’s Audit Committee, Corporate
Governance and Nomination Committee and Compensation and
Succession Committee.
Linda A. Goodspeed became a Director of the Company in
October 2004. In 2001, she joined Lennox International, Inc., a global
supplier of climate control solutions, and currently serves as
Executive Vice President and Chief Technology Officer of that
company. Prior to that, Ms. Goodspeed served as President and Chief
Operating Officer of PartMiner, Inc., a global supplier of electronic
components. She has also held management positions in product
management and development, research and development and
design engineering at General Electric Appliances, Nissan North
America, Inc. and the Ford Motor Company.
Stephen Rabinowitz became a Director of the Company in
October 2004. He retired in 2001 from his position as Chairman and
Chief Executive Officer of General Cable Corporation, a leading
manufacturer of electrical, communications and utility cable. Prior
to joining General Cable as President and Chief Executive Officer in
1994, he served as President and CEO of AlliedSignal Braking
Systems, and before that as President and CEO of General Electric’s
Electrical Distribution and Control business. He also held
management positions in manufacturing operations and technology
at the General Electric Company and the Ford Motor Company. Mr.
Rabinowitz is also a Director of Energy Conversion Devices, Inc., JLG
Industries, Inc. and the Nanosteel Company.
Columbus McKinnon Corporation
_____
50 Years of LODESTAR.®
_____
130 Years of Operation.
_____
A Celebration of Excellence.
®
Columbus McKinnon Corporation
140 John James Audubon Parkway
Amherst, New York 14228-1197
716-689-5400
http://www.cmworks.com