JACKSON, MI – Sparton Corp. reported a second-quarter net loss of $2.8 million on sales of $54.5 million for the period ended Dec. 31. The net loss increased 50% from a year ago, while sales were down about 0.5%.

On Feb. 6, the company laid off 6% of its approximately 1,000 employees and expects to take a charge of $400,000 in severance costs during the March quarter. The company expects the cuts to save $4.7 million annually.

For the quarter, gross profit was 7.1%, up 40 basis points from last year. The company’s Vietnam facility realized approximately $100,000 of gross profits, up from a loss of $300,000 last year.

Aerospace sales rose $14.2 million year-over-year on higher volume to three existing customers, although margins fell on startup costs for new programs. Medical sales fell, but are expected to rebound in coming quarters, the company said.

• Prev
• Next