RIPON, Wis. — Alliance Laundry Holdings LLC, the parent company of Alliance Laundry Systems, reports that net income almost doubled to $4.5 million for the quarter ended March 31, 2010, from $2.28 million for the same period last year. However, net revenue for the quarter decreased $3.7 million, or 3.8%, to $92.7 million from the previous year’s $96.4 million.
The privately held maker of washers and dryers credits the net income gains to improved gross profit, lower securitization and other costs, and lower interest expenses, which were partially offset by higher selling, general and administrative expenses, and a higher provision for income taxes.
Lower sales in the United States, Canada, Europe and Asia contributed to the overall revenue decreases, the company says.
“Although the market demand for commercial laundry products remained challenging in North America and Europe, our top- and bottom-line performance for the quarter were in line with our expectations,” says CEO Thomas L'Esperance in an earnings announcement. “Consistent with last quarter, we are seeing pockets of strengthening demand in emerging markets and signs that point to further stabilization and gradual improvement in the second half of 2010 and in 2011.”
L'Esperance concluded, "We expect a strong earnings performance for 2010 and will intensify our effort on new product development to position the business for growth as we emerge from this downturn. Our core strategies have not changed; we will continue to focus on our customer one initiative and will continue to grow our presence outside of the U.S. and Canada."