Taylor Devices' third-quarter profits tumbled by 71 percent as the North Tonawanda shock absorber manufacturer was stung by falling sales of its seismic protection and aerospace products.
Douglas P. Taylor, the company's president, noted that the decline was partly due to delays in some new seismic and defense contracts, coupled with difficult comparisons against record high sales and earnings last year.
"It is always difficult to look good following such a year," Taylor said. He noted that the company's sales and profits through the first three quarters of this year, while down sharply from last year, are better than the average over the previous four fiscal years.
Taylor Devices profits fell to $338,203, or 10 cents per share, compared with $1.18 million, or 35 cents per share, a year ago as some of its recent seismic work has been less profitable, while the strengthening U.S. dollar also has hurt earnings on some foreign projects.
The company's sales fell to $5.7 million during the quarter that ended in February, compared with $8.3 million a year earlier.
Revenues from Taylor Devices products that protect buildings and bridges from damage during earthquakes and high winds fell by 38 percent, while aerospace revenues dropped by 21 percent.
The declines were particularly steep in Taylor Devices' Asian markets, which can be a significant source of business for its seismic protection products. Asian revenues fell by 79 percent and accounted for just 7 percent of the company's overall sales during the quarter, compared with 23 percent a year ago. U.S. sales dropped by 19 percent.
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