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SIFCO Industries Inc Reports Operating Results (10-Q)

May 12, 2010 | About:
10qk

10qk

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SIFCO Industries Inc (SIF) filed Quarterly Report for the period ended 2010-03-31.

Sifco Industries Inc has a market cap of $70.5 million; its shares were traded at around $13.3 with a P/E ratio of 8.5 and P/S ratio of 0.8. SIF is in the portfolios of Chuck Royce of Royce& Associates.

Highlight of Business Operations:

Net sales in the first six months of fiscal 2010 decreased 16.8% to $41.2 million, compared with $49.5 million in the comparable period in fiscal 2009. Net income in the first six months of fiscal 2010 was $3.0 million, compared with $4.0 million in the comparable period in fiscal 2009.

The ACM Groups selling, general and administrative expenses decreased $0.2 million to $1.9 million, or 6.2% of net sales, in the first six months of fiscal 2010, compared with $2.1 million, or 5.8% of net sales, in the comparable period in fiscal 2009. The decrease in selling, general and administrative expenses is principally due to lower variable selling expenses as a result of lower net sales in the first six months of fiscal 2010, compared with the same period in fiscal 2009.

The ACM Groups operating income decreased $0.6 million to $5.4 million in the first six months of fiscal 2010, compared with $6.0 million in the comparable period in fiscal 2009. The following is a comparison of operating income on both a LIFO and FIFO basis:

The ACM Groups backlog as of March 31, 2010 was $67.8 million, compared with $70.6 million as of September 30, 2009. At March 31, 2010, $51.1million of the total backlog was scheduled for delivery over the next twelve months. All orders are subject to modification or cancellation by the customer with limited charges. Delivery lead times for certain raw materials (e.g. aerospace grades of steel and titanium alloy) are starting to lengthen and the ACM Group believes that such lead time increase may ultimately result in a fundamental shift in the ordering pattern of its customers. The ACM Group believes that a likely consequence of such a shift is that customers may place orders further in advance as they previously did, which may result in an increase, relative to comparable prior year periods, in the ACM Groups backlog. Accordingly, such backlog increase, to the extent it may occur, is not necessarily indicative of actual sales expected for any succeeding period. Due principally to the overall weak global economic conditions and the related impact such conditions have continued to have on commercial aviation, the ACM Group continued to experience a decrease, during the first six months of fiscal 2010, in orders for products that principally support commercial aircraft.

Net sales in the second quarter of fiscal 2010 decreased 23.3% to $19.9 million, compared with $25.9 million in the comparable period in fiscal 2009. Net income in the second quarter of fiscal 2010 was $1.0 million, compared with $2.4 million in the comparable period in fiscal 2009.

The ACM Groups operating income decreased $1.7 million to $1.9 million in the second quarter of fiscal 2010, compared with $3.6 million in the comparable period in fiscal 2009. The following is a comparison of operating income on both a LIFO and FIFO basis:

Read the The complete Report

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