Nortech Ends Fiscal Year with Bang
MINNEAPOLIS -- Nortech Systems swung to a fourth-quarter net profit of $137,051, from a loss of $145,347 a year ago.
The electronics manufacturing services company reported net sales of $27.4 million for the quarter ended Dec. 31, up 38% over 2009. Operating income was $253,248 for the quarter, up from $8,456. Sales growth was led by medical and industrial customers, which are demonstrating increased stability and confidence, the firm said.
For the fiscal year, the company reported net sales of $99.8 million, up 25% from 2009. Operating income was $1.2 million versus an operating loss of $5.5 million, the latter of which included one-time restructuring charges of approximately $1 million. Net income was $507,000, up from a net loss of $3.8 million.
“We made significant progress in 2010 – growing sales, returning to profitability and expanding our capabilities with two strategic acquisitions,” said Mike Degen, Nortech's president and CEO.
“Global market factors are starting to increase prices on our key commodities – particularly copper and petroleum-based products – and we’re working to offset price fluctuations,” Degen said. He said the EMS industry remains extremely competitive, with consolidations and excess capacity depressing prices.
In the past year, Nortech acquired a Milaca, MN-based electronics manufacturer that specializes in medical device design and manufacturing, and the EMS operations of Winland Electronics.
