ST. LOUIS -- Top 40 EMS provider LaBarge reported fiscal third-quarter net sales of $74.7 million, up 3.5% from last year, on strength in the industrial and natural resources sectors.

 

Sales were up 8.3% sequentially, the company said. The Appleton, WI, operation, acquired in December 2008 from Pensar, contributed sales of $16.7 million quarter, versus $13.6 million a year earlier.

“We continue to experience broad-based strengthening in our business with customer demand increasing across several key market sectors, especially industrial and natural resources,” said Craig LaBarge, chief executive and president. Defense, industrial, natural resources and medical market sectors comprised about 95% of total sales in the period. He said the current forecast calls for record sales this fiscal year.

Net earnings were $4.2 million, up 10.5% year-over-year. Gross margin in the quarter was 20.6%, up 30 basis points from a year earlier and 70 basis points from the second quarter. The Appleton gross margin was 12.7%, up from 8.9% a year ago and 11.6% in the second quarter.

Net cash from operations was -$472,000, compared with $12.2 million last year, primarily on higher accounts receivable for the period. Total debt as of March 28  was $39.4 million, down from $45.5 million.

 

Net sales year-to-date are down about 1% to $206.9 million, while net earnings are up 31.2% to $10.1 million. The current results include a positive one-time tax adjustment.

Shipments to defense customers made up 39% of overall sales, industrial 26%, natural resources 19% and medical 11%. 

“Due to broad-based strengthening in customer demand, bookings of new business in the third quarter increased 50% from the comparable period a year earlier and 14% from the current-year second quarter,” said LaBarge. Higher bookings resulted in backlogs at March 28 of $194.4 million, up 8% from the December period.

"Based on our current visibility and the anticipated continued strengthening of order flow across key market sectors, particularly industrial and natural resources, we expect continued business strength into next fiscal year, with sales and earnings for the 2011 full fiscal year expected to reach new record levels,” said LaBarge.

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