Taylor Devices earnings hit by move to new building - The Buffalo News

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Taylor Devices earnings hit by move to new building

Taylor Devices said the task of moving its production equipment to a new building within North Tonawanda hurt its fiscal third-quarter profits.

The shock absorber manufacturer said its net income in the quarter ending Feb. 28 fell 64 percent from a year ago, to $222,936. During October and November, the company moved its production equipment from its headquarters to the new Buffalo Bolt Way campus.

“This caused an interruption of production, with extensive lost time involved in installation, leveling and setup of the machines,” the company said in a regulatory filing.

Taylor Devices’ quarterly net sales fell 16 percent to $4.8 million. Its diluted earnings per share was 7 cents, down 63 percent from a year ago.

In his spring letter to shareholders, President Douglas P. Taylor said new order bookings for seismic and aerospace/defense sales “are improving, with a surge in defense orders from the now-approved 2014 defense budget.”

The company’s firm-order backlog increased to $18.5 million from $16.5 million at the end of the second quarter.

Taylor said shipments at the start of the third quarter were lagging as the company continued to ramp up production at the new location. But by February, he said, shipping levels had improved, and revenue recorded in the month had reached an annualized rate of $25 million.

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