Kewaunee Earnings Drop Even as Major Competitor Exits Market

But net earnings for the quarter were $940,000, down from $1.3 million a year ago. "Earnings for the quarter were unfavorably impacted by the shipments of the remaining orders in the backlog that were bid in the prior year at extremely competitive pricing," the casegoods company said in its earnings release, which it attributed to "a major competitor exiting the marketplace, and to a lesser extent, by a higher effective income tax rate."

Incoming orders for its domestic business were strong during the quarter, Rausch says, as opportunities increased from the improving marketplace for laboratory furniture and scientific equipment in the United States. Growth is expectd in the markets of India and the Middle East, although the timing of international incoming orders continues its unevenness from quarter-to-quarter, Rausch says..

"In our Domestic business, incoming orders continued to be strong during the quarter, and profit margins improved over those of the past two quarters," said David M. Rausch,  CEO. "Our International business continues to see project opportunities globally from our expanded sales organization and the continued strengthening of the Kewaunee brand worldwide."

Rausch says Kewaunee "will continue to experience sales growth in fiscal year 2016. . My optimism is also based on our strong order backlog and expectations that our International business will continue its long-term progress."

Founded in 1906, Kewaunee Scientific designs, manufactures, and installs laboratory, healthcare, and technical furniture products. Products include steel, wood, and laminate casework, fume hoods, adaptable modular systems, moveable workstations, stand-alone benches, biological safety cabinets, and epoxy resin worksurfaces and sinks.