Citing the slump in the electronics industry, Burbank-based Zero Corp. said its earnings were off 16.8% in its second quarter ended Sept. 30.
The company reported profit of $2.5 million, or 20 cents a share, on sales that rose 4% to $31.9 million.
Company officials said a cost-cutting effort has led to the dismissal of about 50 workers from a worldwide staff that now totals about 1,700. Many of the layoffs were at Zero's Healdsburg facility in Northern California, which makes acoustical covers that quiet computer printers.
Zero is phasing out that operation, and also has consolidated some of its metal enclosure operations in Burbank. The company plans to sell its 90,000-square-foot factory in Burbank, retaining a 300,000-square-foot plant in the city.
The cutbacks prompted Zero to subtract $367,000, or 3 cents a share, from its second quarter net income.
Zero makes enclosures and accessories for the electronics industry, including cabinets, cases and cooling equipment. It also makes Zero Halliburton aluminum luggage and camera cases.
For the six months ended Sept. 30, Zero earned $5.1 million, or 41 cents a share, on sales of $63.7 million. In the same period a year ago, Zero earned $5.8 million, or 47 cents a share, on sales of $60.5 million. Earnings thus were down 12.5% despite 5.2% higher sales.