NEW YORK Dynacast International Inc.s sales jumped in the second quarter on improved conditions in Europe and continuing demand in Asia.
"Were cautiously optimistic that the worst of the European recession is over," president and chief executive officer Simon Newman said in a conference call Aug. 26. "We see a number of opportunities in new programs in Asia and North America and Im excited about the prospects for business in the next couple of months.
Charlotte, N.C.-based Dynacast, which makes metal die cast parts out of aluminum, magnesium and zinc alloys, posted net income of $400,000 for the three months ended June 30, down 42.9 percent from $700,000 in the same period last year despite an 11.5-percent increase in sales to $143.1 million.
North American sales of $39.4 million accounted for 27.5 percent of Dynacasts total sales in the second quarter, up 16.2 percent from $33.9 million (a 26.4-percent share) a year earlier.
Sales increased at its Lake Forest, Calif., and Mexico City facilities due to increased demand in the automotive safety and consumer electronics markets, offset slightly by softer sales in the health care market, executive vice president and chief financial officer Adrian Murphy said during the conference call.
There are a number of product expansions under way in North America which will improve sales results in the future, Newman said. Dynacast will begin metal-injection molding (MIM) output in the fourth quarter (amm.com, Feb. 12), and the company has already received MIM orders and expects the new product will add $4.5 million in annual revenue, he said.