AAI's parent attributes profit drop to a contract No chief at the moment at United Industrial Corp.

November 01, 1995|By Ted Shelsby | Ted Shelsby,SUN STAFF

United Industrial Corp., the New York-based parent of AAI Corp., yesterday reported a 72.5 percent drop in third-quarter earnings, a decline it attributed to increased costs related to a federal contract.

The earnings report comes a little more than a week after a major

shake-up of the company's top management that has left it without a chief executive officer and board chairman.

The company announced Oct. 23 that P. David Bocksch, the president and chief executive, had resigned and Thomas J. Carmody, the chief financial officer, was fired. Four days later, Bernard Fein, 87, who had lead the company since 1961, resigned as board chairman. He continues to serve as a director.

Mr. Bocksch and Mr. Carmody were hired in late March and late April, respectively, with the goal of turning around a company that has seen its sales and earnings drop significantly in recent years.

AAI, in Cockeysville, accounts for about 85 percent of United's sales. The local company has been involved in an unprofitable venture to produce simulators to train helicopter pilots for the military.

For the three months ended Sept. 30, United earned $423,000, equal to 4 cents a share, down from $1.5 million, or 13 cents a share in the like part of 1994. Sales totaled $53.6 million, down from $59.7 million.

Although sales rose 7.2 percent during the first nine months of the year, to $163.1 million from $152 million, net income fell 27.8 percent, to $2.9 million. Earnings per share for the period were 24 cents vs. 33 cents in the like part of 1994.

The company reported that its business backlog on Sept. 30 was $202 million, 11 percent ahead of a year ago.

United's stock closed yesterday at $5.125, down 12.5 cents.

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