Polk Audio's profits fall 63% amid high costs, lower revenues Electronics

January 26, 1996|BY A SUN STAFF WRITER

Polk Audio Inc., a manufacturer of high-quality loudspeaker systems for home and automotive use, yesterday blamed high production costs and a dip in revenues for a 63 percent decline in third-quarter earnings.

For the three months ended Dec. 31, Baltimore-based Polk posted net income of $416,570, equal to 25 cents a share. This compares with a profit of $1,134,633, or 67 cents a share, in the corresponding period of 1994. Sales declined 5.6 percent to $13,120,046.

For the first nine months, Polk earned $431,786, or 26 cents a share, from sales of $34,102,080. In the like part of 1994, the company earned $1,295,882, or 78 cents a share, from sales of $30,871,750.

"This was a disappointing quarter for Polk Audio," George M. Klopfer, chief executive, said in a statement. "Our expectations for revenues were not met as product demand at the retail level, especially over the holiday season, was soft.

"Our product costs remained high, relative to sales of our existing lines and also in connection with our ramping up of production for the new Eosone line, for which delivery is scheduled to begin this current fiscal quarter."

Polk's stock rose 87.5 cents yesterday, closing at $9.50.

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