Bacou USA of Smithfield, which manufactures and markets a variety of workplace safety devices, reported quarter net sales of $74.8 million, an increase of 2.6 percent over a year ago. Net income was relatively flat at $7 million for the quarter, versus $7.1 million for the first quarter last year.
“For the quarter, we reported modest growth in net sales,” said Philip B. Barr, president and CEO of the company. “Our business remains solid, but we have experienced less than expected demand for our products by distributors and end-users because of the uncertain U.S. economy and resulting reductions of inventory at all levels of the supply chain.”
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Barr said the company’s profits were down slightly because it had anticipated and geared up for higher demand.
“We had prepared ourselves to meet higher levels of demand than we actually experienced, which reduced profitability,” he said. “During March and April, we took steps to bring our direct and indirect labor resources into line with these lower production requirements, which should provide some recovery in our gross margin during the second quarter.”
He also said the company took other steps to cut spending, including reduced inventories and receivables.
Bacou had announced previously that it was evaluating its “strategic alternatives,” a process that the company said is ongoing. During the quarter the company spent $305,000 in professional and fees related to the study. Company officials said they would not comment on the study until it is concluded.
Bacou USA designs, manufactures and sells products that protect the sight, hearing, respiratory systems and hands of workers, as well as related instrumentation including vision screeners, gas monitors and test equipment for self-contained breathing apparatus.
