AstroNova profit dips on 737 MAX grounding, economic uncertainty

WEST WARWICK – AstroNova Inc. reported a $951,000 profit in the second quarter of 2019, a 20.4% decline year over year. Earnings per diluted share were 13 cents, compared with 17 cents one year prior. Revenue for the period ended Aug. 3 was $33.5 million, a decline from $33.8 million one year prior.

“While we continued to make good progress on our long-term strategic objectives, our second-quarter results reflect a confluence of what we anticipate are short-term headwinds,” said Gregory A. Woods, AstroNova’s CEO and president.

The company’s Test & Measurement segment reported revenue of $11.3 million for the quarter, a 5.9% drop over the year. The product line’s operating profit fell 44.7% to $1.6 million in that time.

“In the Test & Measurement segment, the ripple effects of the 737 MAX grounding had a more pronounced impact on revenue and margin mix in the quarter than we had anticipated,” said Woods. “This was in part due to new aircraft shipment reductions but also because several retrofit printer upgrade orders for existing aircraft were deferred so that those planes could be kept in service.”

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The company’s Product Identification business increased 1.7% to $22.1 million. Segment operating profit increased 3% year over year to $2.2 million.

“Our Product Identification segment was affected by some customer-specific weakness in Asia, partly attributable to increased global economic uncertainty,” said Woods. “These temporary challenges do not affect our positive long-term view or the strong underlying fundamentals of AstroNova’s business.”

Chris Bergenheim is the PBN web editor. You may reach him at Bergenheim@PBN.com.

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