Several area public companies were reporting robust second quarter sales and profits, much of it based on the proliferation of technology-based businesses, innovation, and greater productivity. The one exception is Hasbro, the giant toymaker from Pawtucket, which reported profits down 80 percent in the second quarter because sales for three of its main products had slowed.
At Textron, technology helped drive revenues up 12 percent and profits up 10.5 percent. At Quaker Fabric, a company that for the last few years has seen its stock price plummet, sales jumped 15 percent and profits nearly 380 percent as the company’s introduction of higher quality products was meeting with success in the marketplace.
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Here’s a look at how some public companies fared, based upon their quarterly reports. The companies that are included are those that have recently reported their results publicly. They are listed alphabetically.
Hasbro earnings drop 80 percent
PAWTUCKET – Hasbro, Inc. (NYSE:HAS) second-quarter earnings dropped 80 percent because of lower sales in three major product lines, Pokemon, Star Wars and Furby toys and games. The company earned $6.5 million, compared to $32.3 million for the same period a year ago. Sales were $778.4 million, compared to $874.6 million last year.
The company said that overseas sales of Pokemon continued to be strong, but enthusiasm for the toys based on the popular Japanese cartoon character has waned in this country. Sales of Furby, the interactive furry doll introduced in 1998, also have slowed. Toys based on the “Star Wars” movie “Episode I: The Phantom Menace,” also performed poorly.
KVH revenues up 22 percent
MIDDLETOWN — KVH Industries, Inc. (NASDAQ:KVHI) last week reported second quarter net sales of $8 million, up 22 percent from the previous year, and a net loss of $170,000, down from $310,000 reported for the same quarter last year.
The company attributed revenue increases to growth in its mobile satellite communications and fiber optic sales, offsetting a decline in military revenues for the period.
For the first six months of the fiscal year, KVH reported net sales of $13,647,769, up 9.2 percent from the previous year. The net loss was $1,035,889, up from $452,737, a 128.9 percent increase in net loss for the six month period.
Quaker Fabric reports record growth
FALL RIVER — Quaker Fabric Corp. (NASDAQ:QFAB) is reporting second quarter net sales of $80.3 million, up 25 percent from the same period a year ago, and net income of $3.9 million, up from $809,000 the previous, or a 377 percent increase. For the first six months net sales were $155.4 million, up nearly 29 percent, and net income was $6.1 million, up from $427,000 or 1,328 percent increase.
“We are delighted by our strong second quarter performance,” said Larry Liebenow, the company’s president and CEO, who noted that both sales and earnings set company records. Liebenow attributed the growth to an upgrading of the company’s product line.
Stanley Works
NEW BRITAIN, Conn. — The Stanley Works (NYSE:SWK) net sales for the second quarter of $703 million, up 3 percent, and net income of $51 million, nearly double that of the same period a year ago.
Stanley Works, which owns Bostich in East Greenwich, saw sales increase 5 percent in the Americas, 13 percent in Asia, but decline 9 percent in Europe. The European decline, the company said, was attributable to “unfavorable currency translation.”
”Our solid fill rates, steady stream of new products and ‘War in the Store’ in-store merchandising initiatives are producing better results,” said John M. Trani, chairman and chief executive officer.
For the first six months, net sales were $1.4 billion, up 2 percent from the same period last year. Net earnings were $98.8 million, up 77.7 percent.
Stanley Works supplies tools and door systems and related hardware forprofessional, industrial and consumer use.
Valley Resources earnings
CUMBERLAND — Valley Resources announced third quarter earnings of $2.6 million, up 13 percent from the same quarter last year. For the nine-month period earnings were $5.2 million, up 4 percent.
Utility companies such as Valley Resources, primarily a distributor of natural gas, are reliant upon the weather. For the nine months, the company said it was 1 percent colder than the previous year, but 7 percent warmer than a normal year.
Textron revenues up 12 percent
PROVIDENCE — Textron, Inc. is reporting second quarter revenues of $3.2 billion, up 12 percent from the same period a year ago, and net income of $179 million, up 10.5 percent. It marked the 43rd quarter of consecutive quarter-over-quarter earnings growth, a period of over a decade.
While the company showed growth in all its core categories, it was most aggressive in its technology related activities, from procurement systems to small business ventures.
Textron managers have been participating in “JumpSmart” training sessions with Safeguard Scientifics in what the company calls “a comprehensive e-business immersion program.” Training as now reached hundreds of Textron managers and the company’s board of directors, concentrating on “e-business opportunities in the new economy,” the company said.
In June, Textron teamed with EDS CoNext and Ariba to implement business to business e-procurement processes for the purchase of indirect goods and services at the company’s worldwide divisions. The company said that globally it purchases $1.5 billion of indirect goods and services annually. Over the next three to four years, the company said it expects its total e-procurement initiatives related to indirect spending to reduce costs by more than $150 million.
And in early July, the company announced an investment of $25 million in EqualFooting.com, an online business to business marketplace primarily for small businesses offering a variety of products and services, including purchasing, financing, and shipping.
For the six-month period, the company reported revenues of $6.5 billion, up 16 percent and net income of $278 million, down from $1.9 billion a year ago.
