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Uncertainty in Europe, Asia drive down Hurco profit

September 7, 2012

Uncertainty in Europe and a slowdown in Asia pushed down sales and profit at Indianapolis-based Hurco Companies Inc. in its fiscal third quarter.

Hurco, a maker of computer-controlled machining tools, earned just under $4 million during the three months ended July 31, down 13.5 percent from the same quarter a year ago.

Earnings per share in the most recent quarter were 61 cents, compared with 70 cents per share a year ago.

Hurco’s sales and service revenue fell by 1 percent in the quarter, to $49.6 million.

A weaker Euro pared the value of Hurco’s sales and service revenue there by $3.7 million in the quarter, even as revenue from North America rose by $2.4 milion.

New orders booked in the quarter rose by 41 percent in North America but rose by only 23 percent in Europe, due to uncertainty about the debt crisis there.

Hurco’s Asian sales and service revenue fell in the third quarter by $750,000, or 12 percent, and new orders there plummeted by 29 percent.

"I am extremely pleased with the sales and order activity in North America,” said Hurco CEO Michael Doar, in a prepared statement.

Hurco, which employs more than 500 people worldwide, has about 115 employees in Indiana.

Hurco’s shares closed Thursday at $21.80 apiece. The shares are up by 3.8 percent so far this year.

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