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Kewaunee Scientific Reports Results for Second Quarter
Date:12/3/2013

STATESVILLE, N.C., Dec. 3, 2013 /PRNewswire/ -- Kewaunee Scientific Corporation (Nasdaq: KEQU) today reported sales and earnings for its second quarter ended October 31, 2013.

Net earnings for the quarter were $725,000, or $0.28 per diluted share, as compared to net earnings of $649,000, or $0.25 per diluted share, in the second quarter last year. A favorable product mix, lower operating costs, and the favorable impact of the Company's previously reported buyout of the minority interest in its principal international subsidiary more than offset the unfavorable impact of lower sales during the quarter.

Sales for the quarter were $26,098,000, as compared to sales of $31,185,000 in the second quarter last year. Domestic Operations sales were $22,061,000, as compared to sales of $25,683,000 in the second quarter last year. A substantial portion of the decline in domestic sales was anticipated as part of the previously reported strategy underway by the Company to sell more laboratory projects through its dealer network, with the Company providing the manufactured products and the dealers providing related project management, installation and other service activities. International Operations sales for the quarter were $4,037,000, down from $5,502,000 in the second quarter last year. International Operations sales in the second quarter of the prior year were increased by the shipments of several large projects during that quarter.

The order backlog was $69.5 million at October 31, 2013, as compared to $71.1 million at July 31, 2013. Fewer laboratory construction projects of all sizes, public and private, were available in the domestic laboratory market during the quarter, as customers appeared hesitant to move forward on projects because of ongoing political and economic uncertainty. A decline in the domestic orders backlog was substantially offset by an in
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