UFP Technologies posts steep drop in 2Q profit
UFP Technologies Inc. of Georgetown posted a steep decline in second-quarter profit Thursday. The maker of specialty foam products and packaging cited weak demand, particularly in automotive markets.
Net income slid to $566,000, or 9 cents per share, from $1.57 million, or 25 cents per share, in the year-ago period.
Revenue was $21 million, down 26 percent from $28.5 million in the second quarter of 2008.
"The sluggish economy has continued to affect demand, particularly in the automotive market," said R. Jeffrey Bailly, chairman, chief executive, and president.
The company has cut operating costs to operate profitably despite lower sales and is identifying acquisition opportunities to increase market share, he said.
UFP Technologies said it has more than $10 million in cash and $13 million in available credit.
Shares fell 10 cents, or 2 percent, to $5 in afternoon trading.
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