Standex posts $5m loss for fiscal 2009
The news wasn’t great, but it could have been much worse for Salem, N.H.-based diversified manufacturer Standex International Corp.
Standex closed out fiscal 2009, which ended June 30, with a $5.4 million net loss — or 44 cents per share — as compared to $18.5 million in net income, or $1.49 per share — for the same period in in 2008.
“While we experienced a recession-driven decrease in sales across all segments except for the Engineering Technologies Group, sales in our ADP [Air Distribution Products] and Electronics and Hydraulics segments had the most significant declines, as downturns in the housing, white goods, and heavy truck industries impacted the sales of these segments,” said Standex officials in their filings with the Securities and Exchange Commission.
In addition, the company took a goodwill impairment of $21.3 million in its Food Service unit in 2009.
The company said aggressive cost reductions in the form of layoffs, elimination of incentive bonuses and company matches for 401(k) contributions, plant closures and even repatriating cash to reduce exposure to volatile foreign currencies culminated in $15.5 million in savings for fiscal 2009. The savings are projected to be even greater — $20.5 million — in fiscal 2010.
Standex still saw net sales drop 13 percent for fiscal 2009, to $607 million from $698 million in 2008.
Despite the net loss, cash flow remains solid at $43.2 million, just $2 million less than it was at the end of fiscal 2008, and the second strongest position Standex has posted since 2005, the company said.
Standex stock shares stood at $16.78, down 33 cents, at the close of trading on Tuesday. — CINDY KIBBE/NEW HAMPSHIRE BUSINESS REVIEW