Delayed Orders Slow Key Tronic Sales

Postponement of customer orders cut down Key Tronic Corp. sales during the second quarter of fiscal 1997, but the company managed a narrow profit for the period.

Key Tronic had second-quarter earnings of $56,000, or 1 cent per share, on sales of $47 million. That compares with earnings of $696,000, or 7 cents per share, on sales of $56.6 million in fiscal 1996.

The company suffered losses during the third and fourth quarter of 1996, ending the year with a $1.84 million loss, before returning to profitability during the first quarter of fiscal 1997 with a $200,000 gain.

“Second-quarter earnings were less than expected due to the rescheduling of new computer programs by original equipment manufacturer customers,” Fred Wenninger, Key Tronic’s president and chief executive officer, said in a news release Tuesday.

“We expect to resume gradual improvement in the coming quarter as our customer start-up delays are resolved,” he added.

, DataTimes