The Tonawanda News
Tonawanda News — The purchase of several buildings in the Buffalo Bolt Business Park has influenced Taylor Devices profit margins, but only in the short term, company officials said.
Taylor Devices’ third-quarter earnings dropped more than half from 2013’s $622,515 to $222,936 after the company moved much of its production to the park, tucked off of Oliver Street in North Tonawanda. It’s quarterly sales fell to $4.8 million, down more than $1 million from the previous year.
The company purchased and refurbished three buildings with 50,000 square feet at the business park campus for $3.3 million, while maintaining its presence on Tonawanda Island. Earnings have dropped nearly $2 million to $729,922 from the previous year.
But with a backlog of $18.5 million in orders, up $2 million from the second quarter, Taylor Devices President Doug Taylor said in communications with shareholders that the lull created by the production shift had an effect.
Taylor indicated the dip was due to a lag in shipments “as we continued to ramp up production at the new facilities.”
“By February, shipping levels improved and revenue recorded in the month reached an annualized rate of $25 million,” he told investors.
The company also received a steady number of orders related to its earthquake and wind dampers, mostly in Asian and European markets.
Despite the recent end of two long wars in Iraq and Afghanistan, Taylor noted to shareholders that orders related to its military contracts also remain strong, stating that the company has seen a “surge” in defense orders, including soft mounts for machine guns as well as parts for military aircrafts.