Tonawanda News — North Tonawanda’s Taylor Devices, a manufacturer of shock absorption and military-related equipment, set an all-time record for net income during fiscal year 2012-2013, which ended on May 31, despite a steep drop during its fourth quarter.
The company, which occupies six acres on Tonawanda Island and is in the process of finishing a $2.9 million expansion into the Buffalo Bolt Business Park, has seen significant growth in recent years through the sale of its earthquake shock absorption equipment to Asian markets.
Despite a slump in demand from Asia, which led to the fourth quarter drop, the company recorded a net income of $2,547,794 for 2013, up 16 percent from the previous record of $2,198,931 that was set in in 2012.
The higher seismic products sales in the 2012 fiscal year reflected a surge in demand from Asia as a result of heavy damage from the March 2011 Tonoku earthquake in Japan, according to company president Doug Taylor.
But the company’s fourth quarter profits dropped to $548,101 from $862,860 a year earlier, while its shares followed suit, from 26 cents per share in 2012 to 16 cents per share in 2013.
Taylor had predicted during a shareholders meeting last year that a 2012 spike in sales in 2012 could lead to a slump in sales for the coming year. Indeed, the company posted $24,729,585 for 2013 down from a record level of $29,006,812 in 2012.
But, he said, it still serves as one of the company’s stronger years in its nearly 60-year history, with its expansion leaving the potential for robust growth intact. Taylor Devices’ backlog at year-end was $13.1 million, compared to $17.5 million at the end of 2012.
“It is noteworthy that the setting of an all-time record for a full year profitability coincides with the substantial completion of the expansion of our manufacturing space,” said Taylor, in a statement released on Thursday.