TORONTO – Firan Technology Group reported circuits segment sales in the third quarter were down $1.3 million, or 8.8%, compared to the same quarter last year. The decrease is predominantly due to increased intercompany activity supporting the ramp up in Aerospace Chatsworth, which is not reflected in consolidated sales, the firm says.
Third quarter circuit segment net earnings before corporate and interest and other costs were $1.7 million, down 32% year-over-year.
On a year-to-date basis, circuit sales were up $4 million, or 9.6%.
FTG’s total third quarter sales were $19.1 million, down 17.4% year-over-year.
For the quarter ended Sept. 1, total net earnings after tax were $154,000, compared to $3,485,000 during the same period last year.
For the aerospace segment, sales were $5.7 million, down 33% year-over-year. The decrease is primarily attributable to Teledyne PCT transition activities. Year-to-date aerospace sales were up $8 million, or 43.2%.
Aerospace posted a net loss before corporate and interest and other costs of $1.3 million versus net earnings of $2 million in the third quarter of 2016. The results included a one-time net gain of $1.7 million related to the acquisition of Teledyne PCT and lower activity.
The firm generated $2.3 million in cash from operations used to acquire new equipment and pay down debt during the quarter.
“The third quarter of 2017 saw reduced activity, as predicted, as we transitioned the Teledyne PCT equipment to our Chatsworth facilities,” said Brad Bourne, president and CEO. “With the closure of the Teledyne facility, FTG’s cost structure was reduced, and this resulted in increased gross margins, despite the above impacts. As activity in Chatsworth continues to ramp up, we expect to see improving operating results for the corporation.”
During the quarter, FTG achieved $1.9 million in sales from its Photo Etch acquisition.