Allied Motion earnings remain flat
Allied Motion Technologies reported net income of $1.15 million, or 14 cents per diluted share compared to $1.21 million, or 14 cents per diluted share, for the first quarter.
Revenues for the quarter increased slightly to $26.8 million compared to $26.7 million last year.
The results included a pretax charge of $238,000 to cover the expected costs of replacing products in the field due to an incorrect electronic component in a printed circuit board supplied by one of the company’s sub-contract suppliers. Excluding this charge, net income for the first quarter would have been $1.33 million, 10% over the first quarter 2011. In addition, sales to several customers were disrupted during the quarter as products were reworked or replaced to rectify the component error.
“Sales in the first quarter of 2012 were flat compared to the first quarter of 2011 with a 9.4% increase in U.S. sales resulting from modest growth and new business developed in 2011 in our medical, vehicle and electronics markets and a decrease in our industrial and aerospace and defense markets. The increase in the U.S. was offset by an 8.4% decrease in European sales with all of our served markets either down or flat, except for medical, which was up slightly,” said Dick Warzala, president and CEO.
Headquartered in Denver, Allied Motion designs, manufactures and sells motion control products into applications that serve many industry sectors.
INDUSTRIAL SUPPLY MAGAZINE
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