Fri, Dec 13, 2:55 PM (31 days ago)
Kewaunee Scientific Corporation (KEQU) reported a decrease in revenue for the quarter ending October 31, 2024, with net sales of $47,764,000, down from $50,436,000 in the prior year. Domestic sales rose by 6.5% to $36,409,000, driven by increased demand, while international sales fell by 30.1% due to construction delays in India. Gross profit margins improved to 29.2% from 26.7% year-over-year, attributed to enhanced manufacturing productivity and cost-containment measures. Operating expenses rose to $9,518,000, or 19.9% of sales, reflecting higher consulting fees related to the recent acquisition of Nu Aire, which was finalized on November 1, 2024, for $55 million. Kewaunee's net earnings increased to $3,008,000, or $1.01 per diluted share, compared to $2,732,000 in the prior year. The company's cash flow from operations was $7,642,000, and working capital rose to $59,965,000. The acquisition of Nu Aire is expected to enhance Kewaunee's capabilities and market presence, although integration challenges may arise. Overall, the company maintains a positive outlook despite uncertainties in demand and economic conditions.