TransTechnology Sales Edge Up; Profit Plummets

John Wolz

TransTechnology Corporation announced net income for its fiscal 2002 third quarter was $57,000, compared with $698,000 in the same period the previous year.
Fiscal third quarter sales rose about one half of 1% to $21.4 million for the fiscal quarter ended December 31, 2001.
For the nine months ended December 30, 2001, TransTechnology reported a loss of $2 million, compared with a $900,000 loss in the same period last year. Operating income rose 89% to $7.5 million.
The company�s continuing operations � formerly known as the Aerospace Products segment � reported a strong increase in orders and backlog during the third fiscal quarter and gross margin increased 3.3 percentage points.
CEO Michael Berthelot was pleased with improvements. “Growth in new orders and backlog bode well for future revenue growth. Improvements to gross margin and the reduction in SG&A expenses will allow us to improve the profitability of our operations as we convert these orders received into revenues.”
TransTechnology�s divestiture program is “slower than anticipated,” Berthelot acknowledged. Five facilities are currently being marketed and two are in negotiation with qualified buyers.
CFO Jospeh Spanier noted that debt has been reduced by divestiture and restructuring and TransTechnology is now seeking to refinance existing senior debt.
TransTechnology manufactures aerospace products and has 380 employees at facilities in New Jersey, Connecticut and California. �2002 FastenerNews.com