UPDATE 1-Tennant Q3 results top Street; raises '09 EPS view
* Q3 adj EPS $0.27 beats est $0.18
* Net sales fall 17 pct
* Raises full-year earnings outlook
* Shares rise 15 pct
Oct 27 (Reuters) - Tennant Co (TNC.N), which makes floor cleaning products, reported third-quarter results that beat market estimates, helped by lower commodity costs, and raised its full-year earnings outlook, sending its shares up to a new 16-month high.
For the third quarter, net income was $5.8 million, or 31 cents a share, compared with $14.0 million, or 76 cents a share, a year ago.
Earnings for the latest quarter included a tax benefit of 4 cents a share.
Net sales fell 17 percent to $154.4 million.
Analysts on average were expecting earnings of 18 cents a share, on revenue of $150.0 million, according to Thomson Reuters I/B/E/S. For the full year, the company now expects earnings of 55 cents to 63 cents a share, excluding unusual items. It had earlier forecast profit of 20 cents to 50 cents a share, excluding unusual items.
Tennant -- whose customers include building service contract cleaners to whom organizations outsource facilities maintenance - also narrowed its 2009 net sales view to $585 million to $595 million.
It earlier forecast net sales of $560 million to $600 million.
However, Chief Executive Chris Killingstad said, "We continue to face very difficult selling conditions."
Separately, Valence Technology Inc (VLNC.O), which makes safe lithium phosphate energy storage solutions, said it had entered into a two-year supply agreement with Tennant.
Valence will provide lithium phosphate batteries for use in Tennant's newest compact floor scrubber.
Shares of Minneapolis-based Tennant were up $4.35 at $32.92 in morning trade on the New York Stock Exchange. Valence shares were up 2 percent at $1.51. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Aradhana Aravindan)
