TORONTO -- Firan Technology Group reported sales at its Circuits Segment rose 11% year-over-year to $14.6 million in the September quarter, with the increase spread across sites in North America and China.

Higher inter-segment sales were primarily due to increased demand for military products, with Circuits Chatsworth supplying PCBs for integration into assemblies at Aerospace Chatsworth.

The Circuits Segment's net earnings before corporate and interest and other costs were $800,000, down from $1.6 million in 2021. The increase in sales was the most significant impact on the segment profitability offset by reduced subsidies from the US and Canadian governments. 2022 included no government subsidies whereas 2021 included $2.1 million. Excluding the effect of government subsidies, net earnings from the Circuits Segment increased $1.3 million.

The Circuits Toronto site's contract with unionized production employees expired last quarter. Negotiations between FTG and the union regarding wages and benefits are ongoing, which are expected to be completed without a labor disruption. A labor disruption would have a negative impact on product deliveries to customers and on sales and profitability of the corporation, FTG said.

Overall sales increased 17% to $23.1 million as market conditions for aerospace and defense electronics have improved considerably since last year. Each of FTG’s seven sites in North America and China contributed to the increase in sales.  Year-to-date, the printed circuit board group has net sales of $44.3 million, versus $38.1 million a year ago.

Overall third quarter bookings rose 33% to $27.9 million, the best quarter for orders since the third quarter 2019.

Gross margins were $5.7 million, or 24.7%, compared to $3.8 million, or 19.2%, in 2021. The increased sales volume contributed positively to the gross margin rate. Gross margin rate improved to 24.7% from 15.7% last year.

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