Kreisler Manufacturing Corp. (KRSL, Financial) filed Quarterly Report for the period ended 2008-12-31.
KREISLER MANUFACTURING CORP. fabricates precision metal components and assemblies primarily for aircraft engines with both military and commercial application. These products fall into three categories. The primary category is manifold assemblies consisting of fuel manifolds air lines oil lines and de-icer lines. Fuel manifolds supply fuel to the combustion section of the engine. Air lines carry air to cool sections of the engine. Oil lines transfer oil to lubricate various bearings in the engine. De-icer lines transmit hot air to the engine to prevent icing. Kreisler Manufacturing Corp. has a market cap of $10.33 million; its shares were traded at around $4.8805 with a P/E ratio of 6.51 and P/S ratio of 0.35.
For the three months ended December 31 2008, our net sales of products to the industrial gas turbine industry decreased to $725,000 compared to sales of $1,135,000 for the three months ended December 31, 2007. This $410,000, or 36%, decrease was primarily attributable to lower demand for components used in large industrial gas turbines such as the Siemens 501F.
Interest and other income of $24,000 for the three months ended December 31, 2008 was $38,000 lower, or 61%, compared to the three months ended December 31, 2007 interest and other income of $62,000 and was primarily attributable to lower interest rates on our current investment portfolio and lower cash balances.
Income before income taxes for the three months ended December 31, 2008 of $142,000 was $765,000 lower, or 84%, compared to income before income taxes for the three months ended December 31, 2007 of $907,000.
Income tax expense for the three months ended December 31, 2008 of $66,000 was $298,000 lower, or 82%, compared to income tax expense for the three months ended December 31, 2007 of $364,000. Our effective tax rate was 41.5% and 40% for fiscal 2009 and 2008 respectively. A valuation allowance was established to reduce the deferred tax asset to an amount that is more-likely-than-not to be realized. The valuation allowance is based upon the uncertainty of realization of certain Kreisler Polska net operating loss carryforwards.
Net income for three months ended December 31, 2008 was $76,000, a decrease of $467,000, or 86%, compared to three months ended December 31, 2007 net income of $543,000.
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KREISLER MANUFACTURING CORP. fabricates precision metal components and assemblies primarily for aircraft engines with both military and commercial application. These products fall into three categories. The primary category is manifold assemblies consisting of fuel manifolds air lines oil lines and de-icer lines. Fuel manifolds supply fuel to the combustion section of the engine. Air lines carry air to cool sections of the engine. Oil lines transfer oil to lubricate various bearings in the engine. De-icer lines transmit hot air to the engine to prevent icing. Kreisler Manufacturing Corp. has a market cap of $10.33 million; its shares were traded at around $4.8805 with a P/E ratio of 6.51 and P/S ratio of 0.35.
Highlight of Business Operations:
Our net sales of products for commercial aircraft engines of $2,416,000 for the three months ended December 31, 2008 decreased $232,000, or 9%, compared to net sales for the three months ended December 31, 2007 of $2,648,000. Our net sales decrease was primarily attributable to decreases in demand for components used in the CF34 and GP7000 aircraft engine components. These decreases were partially offset by increased requirements for various other commercial engine programs, including the V2500 and PW4000, and the limited commercial aircraft programs currently in production by some of our customers.For the three months ended December 31 2008, our net sales of products to the industrial gas turbine industry decreased to $725,000 compared to sales of $1,135,000 for the three months ended December 31, 2007. This $410,000, or 36%, decrease was primarily attributable to lower demand for components used in large industrial gas turbines such as the Siemens 501F.
Interest and other income of $24,000 for the three months ended December 31, 2008 was $38,000 lower, or 61%, compared to the three months ended December 31, 2007 interest and other income of $62,000 and was primarily attributable to lower interest rates on our current investment portfolio and lower cash balances.
Income before income taxes for the three months ended December 31, 2008 of $142,000 was $765,000 lower, or 84%, compared to income before income taxes for the three months ended December 31, 2007 of $907,000.
Income tax expense for the three months ended December 31, 2008 of $66,000 was $298,000 lower, or 82%, compared to income tax expense for the three months ended December 31, 2007 of $364,000. Our effective tax rate was 41.5% and 40% for fiscal 2009 and 2008 respectively. A valuation allowance was established to reduce the deferred tax asset to an amount that is more-likely-than-not to be realized. The valuation allowance is based upon the uncertainty of realization of certain Kreisler Polska net operating loss carryforwards.
Net income for three months ended December 31, 2008 was $76,000, a decrease of $467,000, or 86%, compared to three months ended December 31, 2007 net income of $543,000.
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