SIOUX FALLS, SD -- Raven Industries reported third-quarter sales in its contract assembly unit fell 3% from a year ago to $17.3 million on softer aerospace demand.

Electronic Systems sales for the period ended Oct. 31 were $17.3 million versus $17.8 million a year ago. Operating income of $2.3 million was relatively flat.

For the quarter, overall net income fell 4% to 11.4 million. For the year, profits are up 19% and on pace for a company record. Sales rose 9% to $93.3 million, also a record, and are up 17% year-todate.

In a statement, president and chief executive Daniel A. Rykhus said, Although our Engineered Films Division achieved double-digit sales growth, we faced another quarter of very tough year-over-year comparisons in operating income. The decline in avionics is being felt in our Electronic Systems Division.

"We continue to see a decline in our avionics-related business. In addition, operating profits and margins in this division can vary between quarters depending on product mix. Electronic Systems continues to assume responsibility for producing additional high-quality components for our Applied Technology Division. As we look to secure new low-volume high-mix projects, we can also count on this division to be a consistent generator of strong cash flows."

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