ST. LOUIS, Aug. 26 -- LaBarge Inc. today reported fourth-quarter net sales rose 38% to $40.9 million over last year and net earnings from continuing operations jumped 93% to $2.5 million.

For the quarter ended June 27, total net earnings grew 135%, also to $2.5 million.

The results include net sales of $11.9 million from the company's Pittsburgh operation, acquired in February.

For the year, net sales rose 28% to $131.5 million. Net earnings from continuing operations rose 110% to $7 million. Total net earnings grew 205% to $6.9 million. The net loss from discontinued operations was $102,000.

Gross margins improved to 23.1%, up from 20.3% in 2003, the result of product mix, operating productivity gains and higher sales volume.

Selling and administrative expenses declined one point, to 14% of sales.

The company has debt of $37.7 million, up from $7.1 million last year, and cash and cash equivalents of $793,000, versus $4 million in 2003.

LaBarge guided for fiscal 2005 first-quarter net sales to increase at least 36%, to $41 million to $42 million and fiscal 2005 sales and earnings to increase 25%.