Hurco Companies Q1 2015 EPS jumps from $0.36 to $0.57
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Sales and service fees were adversely affected by an unfavorable currency impact of 7%.
Sales and service fees for the first quarter of fiscal 2015 were $50,972,000, a slight increase from the same period in the prior year.
However, sales and service fees for the first quarter of fiscal 2015 were adversely affected by an unfavorable currency impact of approximately $3,578,000, or 7%, when translating foreign sales to U.S. Dollars for financial reporting purposes.
European sales increased during the first quarter of fiscal 2015 by 9% compared to the corresponding prior year period. European sales for the first quarter of fiscal 2015 were adversely affected by an unfavorable currency impact of approximately $3,365,000, or 12%, due primarily to a weaker Euro and Pound Sterling when translating foreign sales to U.S. Dollars for financial reporting purposes.
The year-over-year improvement in European sales was primarily driven by increased shipments of higher-performance machines in Germany, France and Italy. North American sales decreased in the first quarter of fiscal 2015 by 9%, reflecting lower order levels in comparison to the same period in the prior year, as many customers took advantage of promotional activities for the International Manufacturing Technology Show (IMTS) during the fourth quarter of fiscal 2014.
Asian Pacific sales decreased in the first quarter of fiscal 2015 by 21% compared to the corresponding prior year period, primarily due to a large multiple machine order received in the prior year period from a customer in China.
Orders in the first quarter of fiscal 2015 were $45,009,000, a decrease of $12,085,000, or 21%, compared to the corresponding period in fiscal 2014.
Hurco's gross profit for the first quarter of fiscal 2015 was $16,547,000, or 32% of sales, compared to $13,919,000, or 27% of sales, for the corresponding prior year period.
The increase in gross profit was attributable to increased sales in Europe of higher-performance machines and improved leverage of fixed costs over higher production levels in comparison to the corresponding prior year period.
Selling, general and administrative expenses for the first quarter of fiscal 2015 were $10,454,000, or 21% of sales, compared to $10,600,000, or 21% of sales, in the corresponding period in fiscal 2014.
Selling, general and administrative expenses were favorably impacted by approximately $474,000, or 4%, when translating foreign expenses to U.S. Dollars for financial reporting purposes. ■