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HIALEAH, FL – Contract manufacturer Simclar Inc. reported first-quarter pre-tax income was $59,101, down almost 94% compared to the first quarter 2007.
While this was partly a result of the decrease in sales, the most significant factor was the inclusion in the 2008 results of costs of approximately $797,000 in relation to the closure of Simclar’s North Carolina facility, the firm said.
First-quarter net income was $40,485, down nearly 94% year-over-year as well.
Revenue was $29.9 million, down 4.7% year-over-year. The decrease was a result of the postponement of the introduction of a key customer's new programs until later in the year.
"With the closure now complete and the transferred business now fully integrated into our Mexican facility, we look forward to the future benefits of improved profitability and cash flow. Although it is evident that the economic slowdown has affected some of our key customers, our backlog at the end of the quarter was $28 million, an increase of 6% since the end of 2007, and our forecasts indicate a stronger second quarter," said chairman Sam Russell.
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