Acquisition Drives Allied Motion Q1 Sales Increase As Profit Sinks

The company's recent acquisition of Germany-based Heidrive was largely responsible for the sales increase, while the company said increased investments led to the profit slide.

Id 16121 Allied Motion

Motion control products designer and manufacturer Allied Motion reported its 2016 first quarter fiscal results on Wednesday, led by a 6.9 percent percent year-over-year sales increase driven by the company's recent acquisition of Heidrive GmbH.

Allied Motion posted Q1 sales of $64.7 million, up from $59.6 million a year earlier. Allied said the increase reflects its January acquisition of Germany-based motor and drive solutions company Heidrive GmbH, which offset lower sales in the vehicle and aerospace and defense markets.

Fifty-five percent of Q1 sales were to U.S. customers, down from 67 percent a year earlier.

The company's had a Q1 profit of $2.1 million, down 28 percent year-over-year.

"The decline in earnings from last year reflects higher operating costs in the quarter from increased investment in engineering and development for multi-product motion system offerings and the investments we continue to make to realign our organization for greater efficiency and accelerated growth," said Allied Motion chairman and CEO Dick Warzala.

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