Allied Motion profits up 23%
Allied Motion Technologies Inc. said that it achieved a 23% increase in net income for the second quarter, despite a 7% decrease in sales.
The company achieved net income of $1.8 million, or 21 cents per diluted share, compared to $1.4 million, or 17 per diluted share, for the same period last year. Revenues for the quarter decreased to $26.8 million compared to $28.8 million last year, with 63% of the decrease due to the dollar strengthening against the Euro and Swedish Krona and 37% due to lower volume.
“Looking out at the remainder of the year, we don’t expect market conditions to change significantly from the current uncertain economic conditions in Europe, the slowdown in Asia and the relatively flat markets in North America”, said Dick Warzala, president and CEO of Allied Motion. “Barring a complete collapse in all markets, we believe our geographic and market diversification will serve us well now and in the future during these continuing uncertain economic times.”
The 23% increase in net income achieved on a 7% decrease in sales is primarily the result of a decrease in operating expenses, and savings realized from a former landlord for early termination of the company’s building lease in Sweden, and a lower effective income tax rate of 28% this quarter compared to 32% for the same period last year.
During the six months ended June 30, the company achieved a 10% increase in net income achieving $2.9 million, or 35 cents per diluted share, compared to $2.6 million, or 32 cents per diluted share, for the same six months last year. Revenues for the first six months this year were $53.6 million compared to $55.5 million for the same period last year, a 3% decrease.
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