Starrett Dips Into The Red In Q1
Athol-based tool maker L.S. Starrett Co. saw its sales fall 10 percent and its net income dip into the negative in its first fiscal 2013 quarter.
Revenue was $56.9 million, down from $63.3 million in the first quarter of last year. The company posted a loss of $351,000, or 5 cents per share, compared to a profit of $2.2 million a year ago.
The company's acquisition of Bytewise in the second quarter of 2012 contributed $2.7 million in sales in the first quarter of 2013, helping to offset a $2-million decline in saw and granite products
In a statement attributed to management, the company called the first quarter "a very challenging environment globally."
"U.S. election inertia, European debt concerns, and China and Brazil sluggishness contributed to a significant revenue shortfall in the period," it said. "This combined with unfavorable currency exchange rates negatively impacted the company's operating results, particularly in its international businesses."
Currency exchange rates represented $4.9 million of the year over year sales deficit, which Starrett attributed mainly to the Brazilian real, which weakened 27 percent against the U.S. dollar. Sales in Brazil in local currency also fell 10 percent.
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