Sypris' EMS Sales Grow in Q2
LOUISVILLE, KY -- Sypris Solutions reported second-quarter revenue at its Electronics Group rose 9.5% year-over-year to $45.2 million.
The unit's gross profit increased 51% to $9.2 million, and gross margins rose to 5.7 points to 20.5% for the period ended July 5.
Overall, the company's revenues fell 25.6% year-over-year to $82.1 million, and the loss increased to $6.8 million, from $900,000 last year. The loss included $1.7 million charged to a previously announced restructuring.
Gross profit was up 75% sequentially, and gross margins increased four points to 9.3%.
Jeffrey T. Gill, president and chief executive, said, “Each of our business segments continued to make real progress. Revenue for Aerospace & Defense increased 20% during the quarter, while its gross profit jumped 158%, reflecting an expansion of gross margins to just under 19% of revenue compared to less than 9% for the second quarter of 2008. The strong Aerospace & Defense performance drove revenue for our Electronics Group to 55% of total portfolio revenue, up from 37% for the prior year period."
Revenue for the Aerospace & Defense segment increased 20.1% to $32.4 million in the quarter on shipments of new electronics assemblies for the Bradley Combat System. Revenue for the Test & Measurement segment fell 10.7% to $12.7 million on softer component screening sales due to weaker commercial aviation business.
Gill said the company's outlook for 2009 year remains unchanged. "The outlook for our Electronics Group is positive, with this segment expected to benefit from further gross margin expansion as we move throughout the balance of the year as a result of process improvements, increased productivity and lower costs."
