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Sparton’s Net Loss Widens on Higher Sales |
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Written by Mike Buetow
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Tuesday, 16 September 2008 |
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JACKSON,
MI – Sparton Corp. reported a net loss of $13 million on sales
of $229.8 million for the fiscal year ended June 30. Sales were up 15%, but the
net loss widened 68%. Operating losses declined from a $12.2 million loss in
fiscal 2007 to a $6.9 million loss in 2008.
Sales to
the medical/scientific instrumentation and government markets rose 19% and 63%,
respectively, year-over-year. Aerospace sales were up 13%. However, industrial
sales fell 19%, and startup delays and unanticipated costs in aerospace and
other programs hurt profitability.
The EMS firm has changed its purchasing patterns and
anticipates inventory will start to decline in the second quarter of fiscal
2009.
Sparton
expects fiscal 2009 to be a challenging year as several startup programs,
primarily aerospace, move into full production. Interim CEO and president Richard
L. Langley said improving quality and operating cash flow and reducing
inventories are primary goals.
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