ST. LOUIS -- LaBarge reported net earnings grew 56% to $4.4 million for its fiscal 2011 second-quarter ended Jan. 2.

The electronics manufacturing services (EMS) said net sales grew 18% year-over-year to $81.4 million on strong defense orders.

“The excellent year-over-year comparisons were the result of our outstanding operational execution and higher shipments to natural resources and industrial customers. Bookings of new business also continued to be strong with bookings from defense customers leading the way during the second quarter,” said Craig LaBarge, chairman, chief executive and president.

For the quarter, gross margin increased 10 basis points to 20%. Operating income was $7.25 million, up 50%. Cash from operations was $6.5 million, up slightly from  $6.4 million.

The contract assembler also slashed its debt 19% to $30.3 million.

Net sales in the first-half grew 26% to $166.9 million, and net earnings increased 57% to $9.3 million. The fiscal 2011 first half was one week longer than the comparable period a year earlier due to the fiscal 2011 first quarter consisting of 14 weeks instead of the typical 13 weeks.

Defense makes up 34% of LaBarge's sales, down from 43% last year. Industrial rose three points to 24%, natural resources was up seven points to 27%, and medical was up one point to 11%.

Bookings increased 16% to $90.2 million by quarter's end, with defense bookings up 61%. The backlog was $235.6 million, up 19%.

LaBarge guided for net sales of $330 million to $337 million for the year, up from $289.3 million in the 2010 fiscal year, and fiscal third quarter sales to be flat sequentially.

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