LaBarge Q3 Profit Declines, Revenues Down - Update

LaBarge Inc. (LB), a contract manufacturer of electronic systems, Thursday said its third-quarter profit decreased from the same quarter a year ago, hurt by a decline in revenues.

St. Louis, Missouri-based LaBarge's third-quarter net earnings decreased to $3.812 million or $0.24 per share from $4.333 million or $0.27 per share in the comparable quarter last year.

On average, 3 analysts polled by Thomson Reuters expected third-quarter earnings of $0.13 per share for the quarter. Analysts estimate typically excludes special items such as one-time charges or gains.

Non-GAAP net income for the third quarter increased to $11.470 million or $0.71 per share from $3.988 million or $0.25 per share in the comparable quarter a year ago.

Net sales for the third quarter declined to $72.216 million from $75.442 million in the corresponding quarter a year ago. The Street anticipated revenues of $70.15 million for the third quarter. Third quarter included revenues of $13.614 million contributed by the Appleton acquisition.

The company recorded an increase in gross margin to 20.3% in the second quarter from 19.9% in the same quarter last year. Excluding the impact of the Eclipse-related net charge, second-quarter gross margin was 21.2%.

Shipments to natural resources customers for the third quarter were 20% net sales, compared to 24% in the same quarter a year ago. Shipments to commercial aerospace customers were 3% of third-quarter revenues, compared to 8% in the comparable quarter a year ago.

For the nine-month period, net earnings decreased to $7.731 million or $0.48 per share from $10.250 million or $0.67 per share in the same period a year ago.

Net sales for the nine-month period, however, increased to $208.615 million from $201.684 million in the corresponding period last year.

Looking ahead to the fourth quarter, the company expects a decline in earnings, net sales and gross margin from the current quarter.

LB closed Thursday's trading at $8.25, up $0.75 or 10.00%, on the Amex.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com