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Park Electrochemical posts 4.8 percent sales decline

Exterior of the office building where Park Electrochemical's

Exterior of the office building where Park Electrochemical's offices are in Melville July 29, 2014. Credit: Newsday / J. Conrad Williams Jr.

Park Electrochemical Corp., a maker of materials for the computing and aerospace markets, on Thursday posted a 4.8 percent decline in second-quarter sales to $42.3 million, as gross profit margins declined versus the year-ago period.

Net income fell sharply to $5 million from $8 million in the 2013 period. The year-ago quarter benefitted from a $2.2 million tax refund in connection with an amended filing that was partly offset by a $119,000 restructuring charge related to the closure of a facility in Zhuhai, China. Diluted earnings per share fell to 24 cents from 39 cents in the year-ago quarter.

Shares of Park, based in Melville, rose 2 cents to close at $23.26 Thursday.

Gross profit margins for the quarter fell to 28.7 percent from 30.6 percent in the year-ago period as selling, general and administrative expenses rose by more than 1 percentage point.

In response to a question in a conference call after the earnings release, Park CEO Brian Shore acknowledged that recent declines in the stock price make a possible stock buyback more appealing.

"When the stock price goes down -- it's not rocket science -- it makes a buyback more interesting," he said.

Shore said that Park's aerospace composites business should see a "spike up" in 2016 and 2017 as contracts with General Electric ramp up, but he voiced disappointment at the company's failure to connect with other aerospace customers.

"I'm pretty unhappy about our revenues outside of GE," he said. "I think we haven't done a very good job."

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