A review of last quarter's earnings...
KRSL posts earnings of $.29 a share...
-Improved results from Kreisler from last quarter as sales reached over $7.5 million.
-However, gross margins fell from 25% last year to 20% this year due to increased cost of materials.
-SG&A as a % of sales was also increased from 8.0% to 8.4%
-Overall margins have decreased are expected to stay at this level for the remainder of the year until improvements begin to occur in the Kreisler Polska division in the second half of the year.
-Backlog up to $32.1 million from $29.8 million last quarter even with the increased sales.
-They will begin shipping parts to UTC for the F119 engine begining January 1, 2008 so sales should ramp up a bit.
-Cash balance increased again to approximately $8.0 million.
ELMWOOD PARK, N.J., Feb. 14, 2008 (PRIME NEWSWIRE) -- Kreisler Manufacturing Corporation (NasdaqCM:KRSL - News) announced sales and earnings for the three and six months ended December 31, 2007.
``All three of our industry market areas -- components for military aircraft engines, commercial aircraft engines and industrial gas turbines -- experienced period-over-period double digit sales growth,'' said Kreisler CEO Michael Stern. ``We benefited from higher margin development work during the second quarter of the prior fiscal year, the reduction of which, coupled with changes in our product mix, impacted our margins in the latest fiscal quarter.
``Our order backlog as of December 31, 2007 increased 38% to $32,100,000 compared to $23,300,000 as of December 31, 2006. Approximately 70% of our order backlog is scheduled to ship over the next 12 months. Our December 31, 2007 cash on hand and short-term investments of $7,999,000 increased $2,380,000 compared to June 30, 2007 due to strong working capital management and advanced payments from our customers.''
Stern further noted that, ``We continue to pursue organic sales opportunities and other strategic initiatives while seeking to manage our costs through further productivity improvements and working with our supply chain. We continue to expand our global manufacturing capabilities and expect Kreisler Polska's tube and pipe facility, when operational in the second half of calendar year 2008, to provide a platform to serve existing and future U.S and European customers.''
