Acme United Corporation reported record earnings and robust cash flow management in its earnings call, despite external challenges. The company set a new quarterly record for earnings, with a net income of $4.8 million, up from $4.5 million the previous year. The earnings per share (EPS) also increased, reaching $1.16 from $1.09, showcasing the company’s ability to generate profit despite external pressures. Acme United demonstrated strong financial management by generating approximately $12 million in free cash flow, enabling it to reduce its bank debt significantly.
The Canadian market experienced substantial growth, with net sales in local currency increasing by 28% in the quarter and 21% year-to-date. Acme United purchased a new facility for Spill Magic in Mount Pleasant, Tennessee, for approximately $6 million, providing additional capacity for expansion. The company raised its dividend payout, reflecting confidence in its financial health, supported by strong cash flow and reduced debt levels.
However, the company faced a 3% decrease in net sales due to exceptionally high tariffs of 145% on Chinese imports, leading to cancellations and delays affecting customer orders. Sales in the U.S. and Europe segments saw a decline, with a 6% decrease in the U.S. and a similar decline in Europe due to the timing of shipments. The Westcott Cutting Tools segment was notably affected by order cancellations due to tariffs, impacting back-to-school sales.
Source: Globe and Mail
Source: Yahoo Finance
Source: Investing.com
