In its biggest decline in quarterly profit since 1973, Burbank-based Zero Corp. said earnings for its first quarter ended June 30 were off 8% on 4% higher sales.
The company earned $2.6 million, or 21 cents a share, on sales of $32.8 million. In the year-ago quarter, it earned $2.8 million, or 23 cents a share, on sales of $31.6 million. The per-share figures were adjusted to reflect a 5-for-4 stock split in March and the acquisition of Contempo Engineering last August.
Earnings were off, Zero said, because of a sluggish economy and because of uncertainty over the Gramm-Rudman bill and pending tax legislation. The company also cited the depressed computer industry.
Zero makes enclosures and accessories for electronic equipment, and many of its products are used by the military. It also makes Zero Halliburton aluminum luggage.