DALLAS, Feb. 6, 2014 (GLOBE NEWSWIRE) -- PMFG, Inc. (the "Company") (Nasdaq:PMFG) today reported financial results for the second quarter ended December 28, 2013.
Second Quarter Fiscal Year 2014 Compared to 2013
Revenue in the second quarter of fiscal 2014 decreased $1.8 million or 5.8 percent to $29.6 million. Improved revenue in the Company's Environmental Systems segment was more than offset by the decline in the Process Products segment. Revenue from the Process Products segment was negatively impacted by sluggish demand in EMEA and the Americas, as well as customer-driven delays on certain projects currently in backlog.Gross profit decreased in the quarter by $3.4 million or 29.5 percent, to $8.1 million on lower revenue and margin deterioration on projects completed and or in process. Gross profit as a percent of revenue decreased to 27.4 percent in the quarter from 36.7 percent in the prior year. Included in cost of goods sold is approximately $471,000 of non-recurring restructuring costs related to the closure of a manufacturing plant in Texas and the relocation of the fabrication activities to the remaining plants in Texas. The gross profit also was impacted by cost overruns on certain projects completed in the quarter and to a lesser extent the slower than planned ramp up of the new manufacturing facility in Denton, Texas, that began fabrication in July 2013. Operating expenses decreased $1.0 million or 9.0, percent in the quarter primarily due to lower sales commissions and other selling related expenses. Interest expense, primarily related to borrowings for the construction of manufacturing facilities in Texas and China, totaled $0.3 million in the quarter. With the completion of the construction of the two facilities, capital expenditures in future quarters will decrease significantly. The second quarter of fiscal 2014 reported a foreign exchange loss of $0.3 million compared to a $0.1 million gain in the prior year.