Aldila, Inc. said net sales for the third quarter declined 9.3% to $10.7 million from $11.8 million a year ago as sales to the company’s golf segment remained soft due to a shortage of consumer discretionary income. Average selling prices for golf shafts grew by 1% but were more than offset by a 14% decrease in unit sales versus the third quarter of 2008.
The company’s Composite Materials business grew 22% in the quarter, a significant improvement over 8% growth reported for the second quarter of fiscal 2009.
Aldila reported a net loss of $571, 000, or 11 cents per diluted share, as compared to a net loss of $1.1 million, or 21 cents per share, in the year-ago period. Included in the loss was an income tax charge of $744,000 ($0.14 per share) related to the shutdown of the company's facility in Mexico. The income tax is on the repatriation of earnings from Mexico, which the company did not previously pay income tax on in the United States. Gross profit improved to $2.5 million from $1.1 million a year ago on a favorable product mix, increased manufacturing efficiencies and lower manufacturing costs. The loss from operations was $61,000 as compared to a loss of $1. 8 million in the year-ago period.
As of Sept. 30, backlog was $10.1 million, which represents a 47% increase over second quarter backlog and a 4% increase versus Q308.
