Chase Slows in Feb Quarter
The company, which supplies conformal coatings and EMS services, reported net income of $454,000, down 76% from a year ago.
Chase suggested it would be looking at acquisitions in the current year. Current working capital is $23.3 million, including a cash balance of $2.6 million with $655,000 outstanding on a line of credit as of February.
Chairman and chief executive Peter R. Chase said, “We are weathering the economic downturn with an eye to our balance sheet. Acquisitions are a key part of Chase Corporation’s strategy and our current financial resources are allowing us to make this a priority for the year.”
EMS sales were $4 million in the quarter, in line with the prior year. Profits were down $73,000 due to costs related to facility and production improvements. Backlogs were $6.3 million, down from $9 million a year ago. "Many of our customers continue to assess their inventory levels and their own customers’ demand, which has resulted in reduced demand for our contract manufacturing services," Chase said. "However, we did see increased order activity with certain existing customers, and that along with some new customer accounts offset reduced sales due to the economic recession. We expect this segment’s operating results to continue to be profitable, but not at the same level observed in the prior fiscal year."
