Defense Stalls Sypris' Growth
LOUISVILLE, KY -- Sypris Solutions' second-quarter net loss tightened to $1.6 million, versus a net loss of $4.3 million last year.
For the period ended July 3, revenue increased 35% from a year ago to $85.1 million, driven by a 48% increase in sales for the Industrial Group. Gross profit increased 77%.
The company's contract electronics assembly unit saw revenue slip $300,000 to $16.2 million in the quarter. Gross profit was $1 million, down from $2.3 million last year, on delays in funding for defense programs.
"The Electronics Group continues to be affected by the delayed approval by Congress of the fiscal 2011 Defense Appropriations Bill, as funds have not yet been fully allocated through the various departments and agencies for program use. We continue to expect the eventual recovery of this market as these funds are allocated,” said CEO Jeff Gilll. "We expect to see an eventual recovery in the defense market now that the 2011 budget authorization has been enacted and the flow of funds to the various departments and agencies for program use has begun."
