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Park Electrochemical reports drop in profits
Park Electrochemical Corp., a Melville-based manufacturer of high-tech materials, said that its second-quarter profits fell 58 percent as global aerospace sales remain sluggish and the company accrued costs from shutting a manufacturing facility in China.
The company, which makes materials used in circuit boards for the telecommunications and aerospace industries, said revenue fell to $46.4 million during June, July and August, down 8 percent compared to the same period a year ago. Profits fell to $3.2 million, or 16 cents per share.
The drop in profits stemmed in part from Park spending $2.5 million to close its Nelco Technology unit in Zhuhai, China. Plus, the company’s bottom line in the second-quarter of 2011 was boosted by $1.6 million in legal settlements, hampering comparisons to the current quarter.
On the sales side, the company continues to feel the impact of a sluggish aerospace market in America and Europe, Park chief executive Brian E. Shore said during a call with analysts. “Aerospace is quite a bit down,” he said.
Despite the drop in sales and net income, Park shares were up nearly 1 percent, to $27.16 per share, in early trading today as the company’s performance beat expectations. Analysts had expected 27 cents per share before the one-time charges, and Park earned 28.
Founded in 1954, park has 613 employees and has facilities in Singapore, China, France, Connecticut, Kansas, Arizona and California.