P&F Industries, a Melville-based metalwork toolmaker whose sales and earnings are dependent on the housing and automotive industries, on Tuesday reported that its profits quadrupled for 2011 compared to the prior year.
The company, with offices on Broadhollow Road, in recent years had seen its revenue slide due to the economy's effect on car and home sales. However in 2011, increased demand for products such as fencing and gate hardware fueled higher profits, the company said in its annual report Wednesday.
The company's stock fell more than 14 percent in early trading Wednesday on the Nasdaq exchange. P&F shares sank 67 cents to $4 in heavy trading, with 45,000 shares changing hands by midmorning compared to an average full-day volume of 5,500.
P&F reported several financial achievements for the year ended Dec. 31.
It earned $2.5 million on sales of $54.5 million, compared to earnings of $681,000 on earnings of $50.6 million for 2010. Net income per diluted share rose to 69 cents from 19 cents.
Its product lines include Hy-Tech industrial pneumatic tools, Eureka siphons, OZAT socket lines and Thaxton hydrostatic test plugs. Its subsidiaries include Continental Tool Group, Countrywide Hardware, Florida Pneumatics, and Nationwide Industries Inc.
For 2011, P&F said, reductions in factory overhead were key to its strong earnings that outpaced sales growth.
The company also raised its prices slightly on most products.
Sales of its Nationwide lines of fencing and gate hardware, which P&F said account for nearly two-thirds of the division's revenue, improved due to the introduction of a new specialty line.
For another subsidiary, Florida Pneumatic, "revenue from its major retail customer declined 8.2 percentage points, or approximately $1,294,000, when comparing 2011 to 2010," the company's annual report said. P&F did not say, in the report, which major retail customer it was referring to; however in past analyst discussions, P&F has said Sears is a major Florida Pneumatics customer.
P&F makes or imports air-powered tools and builders' hardware which it sells "under their own trademarks, as well as under the private labels of major manufacturers and retailers," the company said.
Photo: An impact wrench made by the ATP division of Hy-Tech Machine Inc., a subsidiary of P&F Industries.
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