Design segment gains help bouy Sparton Corp. 2Q results

SCHAUMBURG - Sparton Corp. said strong growth in its Manufacturing & Design Services segment helped boost total net sales in the second fiscal quarter of 2017 to $97.4 million.

The company reported a gross profit margin of 16.3 percent, with an overall earning loss of 9 cents per share.

The Manufacturing & Design Services segment reported gross sales of $67.4 million for the quarter, resulting in a gross profit margin of 12.4 percent, up from 11.2 percent in the prior quarter and 10.3 percent in the same period last year.

"The MDS segment reported net organic revenue growth along with increased new program wins and stronger margins as compared to the prior quarter and Q2 of fiscal 2016," said Joseph J. Hartnett, interim president & CEO.

Hartnett added the company's Engineered Components & Products segment fell short of goals due to delays in production of the Q53G sonobuoy and a loss of a contract in its rugged display platform. "Both of these issues have been addressed and are not expected to have any impact on future results," he added.

Hartnett said the company expects third quarter revenues to be in the range of $97 million to $101 million with a gross profit margin of approximately 18.5 percent.