L.S. Starrett Company Announces Fiscal 2022 Results
The L.S. Starrett Company has announced operating results for the fiscal year ending June 30, 2022.
Fiscal 2022 Financial Highlights
Net sales for fiscal 2022 of $253.7 million increased 15.5% compared to fiscal 2021. Most areas of the business continued to exceed pre-pandemic order intake levels throughout the fiscal year, and as of June 30, 2022, backlog remained at historical high levels. Currency neutral net sales were $251.7 million for fiscal 2022, representing an increase of 14.6% compared to the prior year.
Gross margin for fiscal 2022 was 33.2%, compared to 33.4% in fiscal 2021. Benefits from the Company’s fiscal 2021 restructuring program had been offset in the first half of fiscal 2022 by macro and inflationary pressures, including increased supply chain costs related to the pandemic. In addition, labor shortages in North America drove significant wage increases and reduced plant utilization. In an effort to mitigate the impact of these challenges, the Company implemented price increases in the first quarter of fiscal 2022 in Brazil and the U.S. Additional price increases and surcharges on shipped orders were implemented during the third quarter. As a result of these initiatives, gross margin improved from 31.8% in the first six months of fiscal 2022 to 34.5% in the last six months of the fiscal year.
Fiscal 2022 operating income was $21.6 million, or 8.5% of net sales, an improvement of $5.0 million or 30% from $16.6 million, or 7.5% of net sales, in fiscal 2021. Fiscal 2022 adjusted operating income was $22.0 million, or 8.7% of net sales, an improvement of $5.0 million, or 29%, from $17.0 million, or 7.8% of net sales, in fiscal 2021.
“I am pleased the Company delivered another strong financial performance for fiscal 2022,” said Douglas A. Starrett, Chairman and Chief Executive Officer. “Today, we are better positioned than ever to leverage our strengths. We are in the business of providing application-based solutions to industry across our metrology and saw product portfolios. Starrett’s products are critical to the global supply chain. Our products help keep America and the world moving.”
For more information: www.starrett.com