Flamemaster Corp., a Sun Valley producer of sealants and coatings, said its fiscal second-quarter profit fell 41% from a year earlier on a 37% drop in revenue.
In the three months that ended March 31, Flamemaster's net income declined to $123,540 from $210,659 a year earlier, and its revenue declined to $890,688 from $1.4 million.
The company cited lower sales to the U.S. military through the General Services Administration. Flamemaster blamed the sales decline on losing a major aircraft-sealants contract to Morton International Inc., a Chicago-based maker of salt and specialty chemicals.
As earlier reported, Flamemaster is suing Morton on anti-trust and breach of contract grounds. The suit also alleges that Morton engaged in predatory pricing regarding the government contract and that it breached a confidentiality agreement.
For the six months ended March 31, Flamemaster's net income fell 48%, to $189,737 from $367,782 a year earlier. Revenue declined 39%, to $1.6 million from $2.6 million in last year's first half.