Taylor Devices Inc., a North Tonawanda defense contractor and industrial parts manufacturer, Friday said it has received two unsolicited proposals to be acquired. The identity of the suitors was not revealed.
The company said it "will continue to evaluate any situation providing maximum benefits to the shareholders."
President Paul H. Taylor also said there is a possibility of an employee buyout. He noted that Taylor employees agreed to a smaller raise last year with a profit-sharing program. Funds from that program might be applied to a buyout.
At the company's annual meeting in December, Taylor said he is interested in selling the company, provided a compatible buyer can be found who can use Taylor Device's technology and will retain the firm's North Tonawanda plant and employees.
The company said it will make an annual profit-sharing distribution of $33,000, or just under $600 for each of its roughly 60 employees. Half of the money was paid Friday and the rest will be paid in September when its results for the fiscal year ending May 31 are official.
The company said unaudited results indicated Taylor Devices will show an annual profit of $320,000 on sales of $4.8 million. A year ago the company lost $8,000 on $5.2 million in sales.
Paul Taylor said the brighter earnings picture reflects profitable commercial work and some improvement in aerospace margins. About $2 million of the annual sales were in commercial lines, with the remainder being defense contracts.
The company said it has a $2.3 million order backlog, down slightly from a year ago due to the loss of one aerospace contract.
Paul Taylor said the annual profit assures an improvement in the company's dividend. Late last year the company paid its first cash dividend, 2 cents per share.
A new affiliate company, Tayco Technology, has increased its business 50 percent in the past year and is expected to reach the break-even point next year, the company said. It has produced many prototypes for new products and orders are expected for its Air Shoks, or composite springs made from marine rope.
Tayco Developments, a research arm and holding company, has developed a new line of fluid-amplified, hydraulic and pneumatic products.
Tayco research has generated 36 new patents and 12 current applications that the company expects will produce a dozen new products each for Taylor and Tayco.