Taylor Devices Inc. earned a record $105,436 in the second quarter as profit margins improved and the oil-drilling industry discovered new uses for the firm's products, the North Tonawanda company said Monday.
The defense contractor and industrial parts manufacturer said its net income equaled 4 cents per share in the quarter ended Nov. 30, compared with a loss of $15,306, or less than 1 cent a share, in the same period one year ago.
Sales, however, fell 1 percent to $1.33 million from $1.34 million one year ago.
"New product applications in the oil-drilling industry, plus improved profit margins on our new patented tension-compression products in aerospace, have largely been responsible for the steady increase in our earnings," said Paul H. Taylor, the company president.
Profits for the first half of the fiscal year also were more than the company had ever earned during the same six-month period.
For the first two quarters, net income rose to $187,059, or 7.5 cents per share, from $8,553, or less than 1 cent per share, during the first half of last year. Sales fell 4.5 percent to $2.45 million from $2.57 million.
The company's backlog stood at $3.06 million, and Taylor said most of the firm's defense programs were part of sophisticated systems that generally are not subject to cutbacks.
"We expect sales and profits to continue rising throughout the remainder of this fiscal year," he said.
Taylor said the company's earnings would have been even greater if the company had not given employees an extra day's pay at Thanksgiving "as a reward for increased shipments."