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Park Electrochemical posts decline in 3rd quarter sales, profit

The Melville office building where Park Electrochemical is

The Melville office building where Park Electrochemical is located on July 29, 2014. Credit: Newsday / J. Conrad Williams Jr.

Park Electrochemical Corp., a Melville-based maker of materials and coatings used in the electronics and aerospace industries, Thursday posted a decline in third-quarter sales and profit.

Diluted earnings per share fell to 10 cents, versus 23 cents in the same quarter a year ago, as net sales sank 12.6 percent to $34.7 million.

Net income tumbled to $2 million for the quarter ended Nov. 30 from $4.7 million in the 2013 period as the company recorded pretax restructuring charges of $496,000 related to U.S. cost-reduction initiatives and $140,000 connected to two plant closures, including one in Zhuhai, China, in fiscal 2013.

In a conference call, chief executive Brian Shore said that year-over-year revenue rose in the final week of November and the first week of December but fell during the final three weeks of December, making the near-term outlook uncertain.

"It's hard to read what's going on," he said.

North America accounted for half of third-quarter sales, followed by 41 percent for Asia and 9 percent for Europe. Electronics materials accounted for 73 percent of sales versus 27 percent for the faster growing aerospace materials and parts business.

Shore said that he expects substantial growth in 2015 aerospace revenues.

"We've made major investments," he said. "My feeling is we should see some really meaningful growth in aerospace this year. If we don't, we've failed. Give us an 'F.' "

The company also announced that its board of directors had authorized the purchase of up to $1.25 million Park shares, representing about 6 percent of outstanding common stock.

Shares of Park closed down 1.5 percent to $23.33.

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