24.01.2007

Sevcon down in first quarter

Tech/Ops Sevcon, the major supplier of motor control and other electrical systems for aerial lifts has underlying sales one percent lower for its first fiscal quarter to the end of December, than for the same period in 2005. Sales in dollars actually increased by five percent to $8.3 million, but this was all exchange rate related.

The Company says that it saw sales increases in the fork lift truck, airport ground support and other electric vehicle markets but that these were offset by lower shipments to the US aerial lift sector.

The weakness of the US dollar negatively affected gross margins, which were 36.4% of sales compared to 39.0% in the first quarter of 2005. With operating expenses in line with last year, operating income for the first quarter was down by $40,000 to $204,000. There was also a currency exchange loss of $67,000 this year compared to a currency gain of $22,000 in last year’s first quarter.