Park Electrochemical Corp.’s fiscal 2017 slump continued in the company’s second quarter, according to an earnings report issued this month.
Reporting Oct. 5 on its FY2017 second quarter, which ended Aug. 31, the Melville-based maker of printed circuit boards and composite materials for aerospace manufacturers noted sagging earnings and revenues, both well off their year-prior 2Q FY2016 levels.
Park Electrochemical’s second-quarter revenues of $29.06 million represented a year-over-year decline of 23.4 percent from the $37.95 million reported in 2Q FY2016.
Earnings-per-share dropped proportionately, from 23 cents in last year’s second quarter to 10 cents in the quarter ended Aug. 31.
The down quarter continued Park Electrochemical’s off year. In June, the company reported net sales of $31.49 million for its first quarter of fiscal 2017, well off the $37.83 million reported for 1Q FY2016. It also recorded net earnings of $2.95 million, a 47.3 percent drop from the $4.78 million in net earnings reported for the first quarter of 2016.
The company referenced several causes for the first-quarter miss, including an “inventory burn-off” at major customer GE and decreased demand from Chinese manufacturers, setting the tone for a faltering Asian market.
Referencing the second-quarter “revenue and bottom-line shortfall,” Park Electrochemical Corp. CEO Brian Shore said “it’s all electronics.”
Speaking Oct. 6 on an investor conference call, Shore acknowledged that the company’s electronics revenues “were off even from the first quarter, which was weak.”
“The market is not great,” Shore said. “Programs are falling off.”
But Park Electrochemical is addressing the problem proactively, the CEO added, “replacing those items by getting on new programs as quickly as we need to.”
“There’s really two answers for electronics,” he said. “One is Asia. The other one is in North America. So we have to break it down, because the markets are quite different and the answers are quite different for us.”