- Company improves margins to offset higher material prices.
- Cash position increases by $1 million in the year.
ST. LOUIS, Sept. 7 /PRNewswire-FirstCall/ -- Allied Healthcare Products, Inc. (Nasdaq: AHPI) reported that its net income increased 38 percent to $869,000, or 11 cents per share, during its fourth quarter ending June 30, 2007, versus $629,000, or 8 cents per share, for the fourth quarter last year.
Despite its stronger fourth quarter, Allied experienced flat net income of $1,641,600, or 21 cents per share, compared to $1,648,600, or 21 cents per share, for the prior fiscal year.
Fourth quarter sales decreased by about 3 percent, or $417,000, compared to the last quarter of the prior year. However, lower costs and expenses more than offset the sales decline, producing a solid increase in net income despite income tax expenses for the fourth quarter of 2007 that were $606,000 higher than for the fourth quarter of 2006. The 2006 fourth quarter benefited from a settlement and resolution of state tax contingencies.
For fiscal year 2007, Allied sales declined about $1.04 million, or 2 percent, compared to 2006. Lower costs for 2007 offset the decline.
Higher prices for raw materials such as copper, brass and zinc increased costs about 5.4 percent in fiscal 2006. Despite competitive pricing pressures, Allied was able to selectively increase prices during 2007. These increases, combined with programs to cut costs, resulted in improved margins for Allied.
"We are far from satisfied with flat results for 2007," said Earl
Refsland, president and chief executive officer. Refsland said the company
would continue to hold the line on costs in 2008 and work to increas
|SOURCE Allied Healthcare Products, Inc.|
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