UFP Technologies' Q3 net income rises 11% year-over-year to US$2.9M due to strong demand from medical and molded fiber customers, increased factory efficiency; sales up 9% to US$34.7M

Elyse Blye

GEORGETOWN, Massachussetts , November 5, 2013 (press release) – UFP Technologies, Inc. (Nasdaq: UFPT), a manufacturer of packaging and component products, today reported net income of $2.9 million or $0.41 per diluted common share outstanding for its third quarter ended September 30, 2013, 11.2% higher than net income of $2.6 million or $0.37 per diluted common share outstanding for the same period in 2012. Sales for the third quarter of 2013 were $34.7 million or 8.5% greater than 2012 third quarter sales of $32.0 million. Net income for the nine-month period ended September 30, 2013, was $7.9 million or $1.11 per diluted common share outstanding compared to net income of $7.7 million or $1.09 per diluted common share outstanding for the same period of 2012. Sales for the nine-month period ended September 30, 2013, were $104.2 million or 6.8% higher than sales of $97.6 million in the same period of 2012.

“I am pleased with our third quarter results,” said R. Jeffrey Bailly, Chairman & CEO. “Strong demand from our medical and molded fiber customers helped offset continued weakness in the military market, and enabled us to generate solid improvements to our top and bottom line results.”

“We also made progress on a number of internal initiatives,” Bailly continued. “We increased factory efficiency, which improved our gross margins. We added veteran talent to our sales and management teams, including Dave Smith as Vice President of Operations. And we elected Lucia Luce Quinn, Chief People Officer at Forrester Research, to our Board of Directors.”

“Looking forward to the next two quarters, we expect continued softness in certain markets and some shifting in demand,” Bailly said. “We anticipate that our medical business will remain strong. However, we expect the growth of our molded fiber business to slow in the first quarter of 2014, and military sales to gradually improve but remain below historical levels.”

“In addition, we continue our efforts to identify strategic acquisitions that can increase our value to customers and help position UFP Technologies for long-term success. With our strengthening balance sheet, we are well positioned to respond quickly to these opportunities.”

UFP Technologies is a producer of innovative custom-engineered components, products, and specialty packaging. Using foams, plastics, composites, and natural fiber materials, the Company designs and manufactures a vast range of solutions primarily for the medical, automotive, aerospace and defense, and packaging markets. The UFP team acts as an extension of our customers’ in-house research, engineering, and manufacturing groups, working closely with them to solve their most complex product and packaging challenges.

Industry Intelligence Editor's Note: In an omitted table, the company reported Q3 earnings of US$2.9 million. For the same period a year ago, the company reported earnings of US$2.6 million.

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