(WINDSOR, ON) – Sales numbers are in for local manufacturing company, Reko International, and they are down. Consolidated sales for its second quarter, ended January 31, were $11.2 million, compared to $13.8 million in the prior year, a decrease of $2.6 million or 18.9%.
The sales decrease was largely due to lower volumes in its sales to the transportation and oil and gas sectors, said the company.
Profits, too, were on the decline.
Gross profit for the quarter was $2.0 million, or 18.0% of sales, compared to a gross profit of $2.9 million, or 20.9% of sales in the prior year. The decrease was related to the decrease in sales and the product mix during the period.
However, selling and administrative expenses were down to $0.9 million, or 8.5% of sales, compared to $1.2 million, or 8.4% of sales in the prior year’s quarter. The decrease in primarily a factor of decreases in wages paid to employees and professional fees.
Despite the declines, chief executive officer Diane Reko was satisfied with the results. Her satisfaction is a factor of the quarter’s net income being almost 24% higher than the first quarter of its current fiscal year.
Reko attributed this to auto parts demand being strong along with, “… evidence of demand improvements in our other markets as well. We continue to implement business development strategies and improve efficiencies, while monitoring the potential risks and opportunities arising from a dynamic export market.”
Reko, which is traded on the Toronto Stock Exchange, is a diversified, technology-driven manufacturer. Areas of its expertise include robotic factory automation solutions, precision machining of large, critical parts, and plastic injection and low compression acoustic tooling.