Park Electrochemical sales, profits drop
Sales have dipped 11 percent at Park Electrochemical Corp., a Melville-based manufacturer of high-tech materials. Credit: iStock
The company reported Monday that revenue fell to $46 million during the first quarter, ended May 27, compared to the same period a year ago. Profits slipped 32 percent, to $4.9 million.
Park Electrochemical manufactures materials used in circuit boards for the telecommunications and aerospace industries. 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.
"There is a lot of trepidation out there," said Morris Ajzenman, an analyst with Griffin Securities Inc. in Manhattan.
While the company's sales of components used in aerospace equipment were up slightly, its bottom line was hampered by several factors. Legal expenses were up roughly $400,000 above the company's normal level. And a surplus of raw materials inventory added additional costs.
"Inventory way too high . . . that's sloppy management," chief executive Brian E. Shore said during a call with investors.
Park Electrochemical's stock was down 2 percent Monday, to $23.87 a share.
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