Park Electrochemical reports rise in profits

Park Electrochemical Corp., a Melville-based manufacturer of high-tech

Park Electrochemical Corp., a Melville-based manufacturer of high-tech materials, said profit rose to $8.1 million, or 39 cents per share during the three months ended in September 2013 -- more than double compared to the second quarter of 2012. Photo Credit: Handout

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Despite lower sales, Park Electrochemical Corp. of Melville reported a sharp rise in profits thanks to a tax gain and lower expenses.

The high-tech materials manufacturer said its fiscal second-quarter sales fell to $44.5 million during the three months ended in September, down 4 percent from the same period last year. The results fell short of the expectations of analysts, who had forecast revenue of $45 million.

Nonetheless, Park Electrochemical's profit rose to $8.1 million, or 39 cents per share -- more than double the profit in the second quarter of 2012.

That's in part because the company gained $2.2 million related to amended federal income tax returns. And in the past year Park Electrochemical has closed factories in Connecticut and China, which led to a pretax charge of $2.5 million in the second quarter of 2012 but has since lowered expenses.

"That's a big difference in terms of carrying those costs," Park Electrochemical chief executive Brian Shore said during a call with analysts.

Park Electrochemical's stock was relatively flat amid Monday's broad sell-off on Wall Street, closing down 7 cents at $28.65.

Park Electrochemical manufactures materials used in circuit boards for the telecommunications and aerospace industries.

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The company's sales have been sluggish for several months as global economic uncertainty, particularly in Europe, has left corporations and governments slow to invest in new telecom equipment, analysts said.

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