Despite lower sales, Park Electrochemical Corp. of Melville reported a sharp rise in profits thanks to a tax gain and lower expenses.
The high-tech materials manufacturer said its fiscal second-quarter sales fell to $44.5 million during the three months ended in September, down 4 percent from the same period last year. The results fell short of the expectations of analysts, who had forecast revenue of $45 million.
Nonetheless, Park Electrochemical's profit rose to $8.1 million, or 39 cents per share -- more than double the profit in the second quarter of 2012.
That's in part because the company gained $2.2 million related to amended federal income tax returns. And in the past year Park Electrochemical has closed factories in Connecticut and China, which led to a pretax charge of $2.5 million in the second quarter of 2012 but has since lowered expenses.
"That's a big difference in terms of carrying those costs," Park Electrochemical chief executive Brian Shore said during a call with analysts.
Park Electrochemical's stock was relatively flat amid Monday's broad sell-off on Wall Street, closing down 7 cents at $28.65.
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.