JACKSON, MI -- Sparton Corp. reported a net loss of $800,000 on a 6.2% drop in sales for the three months ended March 31.

The EMS company reported net income of $600,000 on revenues of $58.1 million last year.

For its fiscal third quarter, the gross profit was 9.2%, up from 8.1% last year, as the company ended a program with a less profitable aerospace customer. Despite that, aerospace sales rose $19.4 million over last year, although government and industrial/other sales declined.

As part of the closure of its Jackson, MI, and London, Ontario, facilities, deals with two customers are ending. The company has also had two workforce reductions covering multiple locations, froze its pension plan, temporarily suspended its 401(k) program matching, and other benefit plan changes. The firm took $660,000 in restructuring charges during the quarter. 

In a statement, president and CEO Cary Wood said, “Government sonobuoy testing continues to perform well, resulting in sales with increased margins. Aerospace sales are up, as well as improved margins related to one large aerospace program. While Medical sales are still lagging the prior year at this point, sales are beginning to increase.”

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