Park Electrochemical's 1Q Profit, Sales Drop Sharply as Demand Slumps

By Industrials FOXBusiness

Park Electrochemical (PKE) reported a 57% drop in first-quarter profit and an 11% decline in sales on Monday, as softer demand more than offset cost-cutting initiatives.

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The Melville, N.Y.-based maker of telecom and network equipment reported earnings of $4.93 million, or 24 cents a share, compared with a year-earlier $7.24 million, or 35 cents.

The results matched average analyst estimates in a Thomson Reuters poll.

Sales for the three months ended May 27 were $46 million, down from $51.82 million, but just ahead of the Street’s view of $45 million.

The earnings drop came despite a 6.5% decline -- to $7.1 million -- in selling, general and administrative expenses.