Polk Audio Inc. yesterday said strong sales gave the company more than a fourfold increase in quarterly earnings.
The Baltimore-based manufacturer of home and automobile loudspeaker systems reported earnings of $741,925, or 44 cents a share, for the company's fourth quarter, which ended March 31. That's a 375 percent increase over the $156,054, or 9 cents a share, reported in the same quarter in the previous year.
"The fourth-quarter results, which reflected strong demand across the board for Polk products, were especially encouraging," said George M. Klopfer, chief executive officer. "We also began shipping during the quarter our initial order of Eosone brand loudspeakers to Best Buy Stores. The early response to the line has been positive so far."
Net sales for the quarter were a record $18.1 million -- a 67 percent increase over the $10.8 million in the year-ago period.
For the year, Polk's earnings fell about 19 percent, from $1.5 million, or 86 cents a share, to $1.2 million, or 69 cents a share. The company blamed poor performances in previous quarters on delays of new products and high production costs.
"As in the case of many new projects, we encountered a number of start-up problems, most of which have been brought under control," Klopfer said. "Our profit margins during the year were lower than we would have liked. However, we are hopeful that the margin improvement that began toward the end of the fourth quarter will continue through the current fiscal year."
Pub Date: 5/15/96