Starrett Sees Profit Turnaround

Athol-based manufacturer L.S. Starrett reported net income of $216,000 in the first quarter of its 2014 fiscal year, a turnaround of more than $500,000 a year after it posted a loss of $351,000.

In its quarterly filing with the U.S. Securities and Exchange Commission (SEC), the maker of precision measuring tools reported net quarterly sales of $57.5 million, up about 1 percent from $56.9 million in the same quarter in 2012.

Starrett cited global economic weakness in most of its core markets for what it called a “slow revenue growth trend.” The company told the SEC that foreign sales, especially in Brazil, negatively impacted revenue because of currency exchange. It said it could have brought in an additional $2.1 million, nearly all of that from Brazil, where its currency weakened by 10 percent.

Recognizing that, Starrett said it cut costs in the second half of its previous fiscal year, which ended June 30. It said the cost reductions were targeted at operational overhead in departments where new systems and processes squeezed out savings “without sacrificing critical customer service and new strategic sales and marketing programs.”

Year-over-year North American sales increased a modest $0.7 million from $30.2 million to $30.9 million, as customers initiated more capital equipment spending, particularly for custom-engineered granite and optical and vision products, Starrett said. International sales declined $0.1 million or 1 percent, from $26.7 million to $26.6 million.

Read more

Starrett revenue up 3%; profits higher