Thermon Group Holdings Inc. on Thursday said a tight grip on costs in its most recent quarter helped boost net income despite a drop in sales, but its full-year profits declined in step with lower revenues.
The San Marcos company, which develops heat tracing technologies for pipelines and other industrial uses, reported fiscal fourth-quarter revenue of $67.5 million, down nearly 6 percent from $71.7 million during the same period last year. Heat tracing is using cable and other products to control the temperature of liquids or gases as they pass through pipes or other conduits.
The company said the depreciation of the Canadian dollar curbed sales growth during the year. However, a sharp reduction in the cost of sales helped boost quarterly net income 70 percent to $9.6 million (30 cents a share) from $5.6 million (18 cents a share) during the fourth quarter last year.
While its profit fell 2 cents short of analysts' average projection, Thermon's shares jumped about 2 percent by early afternoon, after the release of the earnings report. The company said it expected revenue to increase in the mid-single digit range for the current year. Thermon's shares closed Thursday at $23.72, up 41 cents, or 1.76 percent.
For its full fiscal year, which ended March 31, Thermon reported profit of $25.8 million (80 cents a share) on revenue of $277.3 million. Both figures fell from the prior year, when the company reported income of $27.0 million (85 cents a share) on sales of $284.0 million.
Founded in 1954, Thermon became a publicly traded company in 2011, when it raised $120 million with an initial public offering of stock.
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