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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