Thanks in part to a key international acquisition, Cemtrex Inc. surged through the third quarter of its 2016 fiscal year – the second straight three-month stretch featuring huge sales and income gains for the Farmingdale-based industrial manufacturer.
Reporting Monday the quarter ended June 30, the global supplier of custom-engineered electronics, environmental monitoring/control products and industrial contracting services reported a 69 percent increase in sales compared to 3Q FY2015, rising to $24.7 million.
The sales increase produced handsome income gains: Cemtrex reported net income of $1.4 million for the quarter ended June 30, a 77 percent increase over the $828,758 reported for 3Q FY2015.
Adjusted earnings before interest, taxes, depreciation and amortization also rose nicely in the third quarter, up 79 percent to $1.9 million.
The sizzling stretch continues a Cemtrex fiscal hot streak that included dramatic second-quarter spikes in sales, income and EBITDA – up 32 percent, 19 percent and 96 percent year over year, respectively, for the quarter ended March 31.
It also caps off a nine-month stretch in which the manufacturer logged big gains in net income (up 26.5 percent, to $2.5 million) and sales (up 33 percent, to $56.9 million).
And the Farmingdale firm – which strengthened its standing in the international electronic manufacturing services market with the May acquisition of 35-year-old German manufacturer Periscope, making Cemtrex Germany’s top EMS company and one of Deutschland’s top 15 companies overall – shows no signs of slowing.
The company received $12 million in orders from new and existing customers in June, according to Chairman and CEO Saagar Govil, marking the strongest month for bookings in the company’s history.
Triggering the avalanche was a big order from a “strategic new customer in the automotive industry,” according to the company, a deal landed through the new German subsidiary.
“With a new strategic customer at our German subsidiary, we are already seeing benefits from our latest acquisition,” Govil said in a statement, adding his company’s strong third quarter proved the merit of Cemtrex’s long-term plans.
“We believe our results this quarter validate our strategy to focus on our core strengths and enhance our organic growth with attractive acquisitions,” the CEO said. “We achieved strong operating performance with improvements in both top and bottom line results.
“Overall, we are focused on new opportunities for growth and are optimistic about our prospects for the future.”