News Column

UFP Technologies Announces Q2 Results

August 19, 2014

By a News Reporter-Staff News Editor at Journal of Technology -- UFP Technologies, Inc. (Nasdaq: UFPT), a manufacturer of packaging and component products, reported net income of $1.9 million or $0.26 per diluted common share outstanding for its second quarter ended June 30, 2014, compared to net income of $3.0 million or $0.42 per diluted common share outstanding for the same period in 2013. Sales for the second quarter were $34.0 million compared to second quarter 2013 sales of $35.8 million. Net income for the six-month period ended June 30, 2014, was $3.9 million or $0.55 per diluted common share outstanding compared to $5.0 million or $0.71 per diluted common share outstanding for the same period of 2013. Sales for the six-month period ended June 30, 2014, were $68.6 million, compared to sales of $69.5 million for the same period in 2013.

"Our Q2 results are down from last year, due in part to softer-than-expected military sales," said R. Jeffrey Bailly, Chairman & CEO. "Results were also impacted by several internal initiatives we are undertaking to accelerate sales growth and position our Company for long-term success. These include consolidating factories in both Michigan and California; establishing a new molded fiber plant and moving our factory in Texas; implementing a new ERP system to enhance our operation in a number of different ways; and making structural changes to our Sales and Engineering teams to improve efficiency and drive growth."

"While these initiatives will have a short-term negative financial impact, we believe they are important strategic investments that will strengthen our platform and serve us well over the long term," said Bailly. "For example, we estimate that both factory consolidations will have paybacks of two years or less."

"Looking ahead, we expect stronger sales in the second half of the year," Bailly added. "And with new Sales and Engineering talent now in place, we expect to ramp up our pipeline of new opportunities as well. We also continue to search for strategic acquisitions that will help increase the value we bring our customers. With our seasoned management team and strong balance sheet, we are well positioned to act quickly when the right opportunity is identified."

UFP Technologies is a producer of innovative custom-engineered components, products, and specialty packaging. Using foams, plastics, composites, and natural fiber materials, the Company designs and manufactures a vast range of solutions primarily for the medical, automotive, aerospace and defense, and packaging markets. The UFP team acts as an extension of our customers' in-house research, engineering, and manufacturing groups, working closely with them to solve their most complex product and packaging challenges.

Keywords for this news article include: Engineering, UFP Technologies Inc.

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Source: Journal of Technology

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