Acquisitions Help Hurco's Q2 Sales, But Profit Dips On Lower Demand

Hurco's 2015 acquisitions of Milltronics Manufacturing and Takumi Machinery boosted North American and Asia Pacific sales, but not enough to offset an overall weakened demand's impact on the bottom line.

Id 17661 Hurcoe

Indianapolis-based Hurco, a manufacturer and marketer of CNC machine tools to the metal cutting and metal forming industry, recently reported its 2016 second quarter fiscal results.

The company posted Q2 sales of $52.0 million, up 4 percent year-over-year. Sales for the first six months of 2016 were up 7 percent over a year ago. Q2 profit of $3.7 million was down 7.3 percent from a year earlier, while six month profit of $7.57 million was down slightly from $7.73 million.

In Q2, North American sales increased by 9 percent year-over-year, primarily due to sales from Hurco's July 2015 acquisition of Milltronics Manufacturing. Milltronics had $3.07 million in Q2 sales, more than offsetting the decline in non-Milltronics North American sales of $1.87 million. Q2 European sales were flat year-over-year, while Asia Pacific sales increased by 17 percent, primarily due to sales from Hurco's acquired business of Takumi Machinery.

Michael Doar, Hurco CEO, stated, “While the negative impact of currency translation and the weaker than anticipated North American market affected our results for the second quarter, I am encouraged by our continued financial performance, which reflects solid European demand for our higher-performance Hurco machines and global demand for the recently acquired industrial brand CNC machines from Takumi. 

Id 17656 Hurco
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