TransTechnology Sales Up, Income Down

John Wolz

TransTechnology reported lower net income for the fiscal year ended March 31, 2000. After tax income was $10.6 million, compared with $12.3 million for fiscal 1999.
Net sales increased 31% to $299.3 million.
The specialty fasteners segment reported fiscal 2000 sales and income growth, excluding plant consolidation charges. “Most of the sales growth was attributable to the acquisitions of the Ellison retaining ring business in July 1999 and the Engineered Fasteners Division of Eaton Corporation in September 1999.
Sales increases were reported in the assembly fasteners and cold-headed parts and domestic hose clamp sales. Declines were posted in aerospace fasteners, retaining rings and European hose clamps.
CEO Michael Berthelot acknowledged “fiscal 2000 was disappointing to us, and was the first time in eight years that we missed our internal financial targets.”
Berthelot said the year�s pluses included increases in sales and profits at aerospace products units, the acquisitions of Engineered Fasteners and Ellison acquisitions.
“These pluses, however, were not sufficient to offset” Aerospace Rivet troubles and “the long-expected decline in profit contribution from our German hose clamp operation,” Berthelot noted.
The strong Pound Sterling and weak German and British economies combined “to result in negative comparisons at our German and UK retaining ring businesses.”
Berthelot observed that “we are beginning to see improvements in our most troubled business units” and “our historically strong performers, such as the aerospace products group, assembly fasteners and cold-headed products are all expected to report solid gains in fiscal 2001.”