Hurco shares surge after quarterly profit soars

March 9, 2012

Hurco Companies Inc. said its fiscal first-quarter profit soared 200 percent over the same period a year ago, driven by strong sales increases in Europe.

The earnings report, released Friday, sent Hurco shares climbing almost 14 percent in morning trading, to $25.81 each.

The Indianapolis-based manufacturer said earnings for the quarter ended Jan. 31 were more than $4.6 million, or 71 cents per share, up from $1.5 million, or 24 cents per share, a year earlier.

Overall revenue in the quarter rose 29 percent, to $51.1 million.

Sales increased 41 percent, to $29.9 million, in Hurco's European region, where the industrial recovery continues, Hurco CEO Michael Doar said.

Sales were up 14 percent in North America, to $15.3 million. They rose 19 percent in the Asia Pacific region, to $5.8 million.

Hurco is a bellwether of sorts for the manufacturing sector. The company designs and makes computerized machine tools for the metal-cutting and metal-forming industry. Its products, which are made in Taiwan and China, are sold to independent job shops and short-run manufacturing operations inside large corporations around the world. Its end users are in aerospace, defense, medical equipment, energy, transportation and computer equipment industries.

"The performance of each division was impressive, as North America reported record sales," Doar said. "Europe continued its strong performance despite the European debt situation, and the Asia Pacific region reported its second-highest sales figures in Hurco's history."



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