ST. LOUIS -- LaBarge Inc. reported net sales fell 9.2% year-over-year to $39.6 million for the quarter ended Oct. 2. Net earnings were down 13% to $2 million, due to customer delays in startup programs and rescheduled shipments.

Craig LaBarge, chief executive and president, said, "Production has now ramped up on most of the affected programs and we expect shipments to proceed without further delays."


The quarter comprised 13 weeks, vs. 14 weeks last year.

For the quarter, gross margins rose to 23.9%, up from 23.0% a year ago. Backlogs were up 10% to $164.9 million. Total debt increased 4% to $29 million.

Shipments to defense customers accounted for 41% of net sales, industrial made up 18%, commercial aerospace was 7%,  government systems was 4% and medical was 3%.

The firm guided for fiscal second-quarter sales and earnings will be up substantially from first-quarter levels and comparable to last year's second quarter, which was the best quarter in LaBarge's history. Double-digit growth in fiscal 2006 full-year sales and earnings are expected, the company said.