Park Electrochemical Corp.’s earnings fall 54 percent
Melville-based Park Electrochemical reported a 54 percent drop in earnings. Credit: Newsday / J. Conrad Williams Jr.
Park Electrochemical Corp., a maker of printed circuit materials for the telecommunications market and composite materials for aerospace, said weaker electronics sales helped push earnings down 54 percent in its third quarter.
The Melville-based company said Thursday net earnings fell to $1.9 million for the quarter ended Nov. 27, while sales fell nearly 23 percent, year over year, to $26.4 million.
Park’s quarterly electronics sales, which make up 72 percent of overall sales, were $19 million for the quarter, down from $25.5 million a year ago.
North American sales were 49 percent of total sales at Park, while Asia accounted for 41 percent of sales, P. Matthew Farabaugh, senior vice president and chief financial officer, said in a conference call.
On the same call, CEO Brian Shore said while electronics have been weak, there are signs of recovery this quarter.
Shore also said the company expects a $3 million to $4 million benefit once its Arizona and California manufacturing plants are combined into one business unit. He said neither location would close.
Park said that for its current fiscal year’s nine-month period, net earnings were $6.8 million, compared to $13.4 million a year ago.
Park shares dropped 6.6 percent to close at $17.66 Thursday.
The shares are up 17 percent over the last year.
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