EVERETT — Unova Inc. said sales growth at its Intermec Technologies division and a turnaround in its reorganized industrial business should make the company profitable this year.
Unova CEO Larry Brady made the prediction after the Everett-based firm reported a loss of $19.3 million, or 33 cents a share, for 2003. That compared with a $2.4 million profit in 2002.
While analysts expected Unova to post a loss for 2003, it was much larger than the loss of 17 cents a share they had forecast. The company’s stock closed at $21.31, down 38 cents, after Unova released its financial results.
The loss included a one-time charge of $9.9 million related to the consolidation of Unova’s industrial operations and the relocation of the corporate headquarters to Everett.
In the fourth quarter, Intermec continued to produce the majority of Unova’s sales. The maker of mobile computers, wireless network equipment and bar code scanners took in nearly $186 million in the fourth quarter, down from more than $207 million in the same period of 2002.
However, 2002’s figure included large amounts from intellectual property settlements with other companies. Excluding that factor, Brady said, revenue from Intermec grew by 5 percent last quarter.
For the year, Intermec made a profit of $65.8 million. The division also is increasing research and development spending in an effort to accelerate growth in the next few years, Brady said.
"While most of our planned increase in research and development is aimed at fueling … growth in 2005 and beyond, current levels of customer interest and activity encourage us," Brady said.
For Unova’s industrial machinery division, 2003 saw the completion of restructuring, including the sale of some businesses and layoffs totaling 1,100 people since 2002.
After losing money for some time, however, the industrial side eked out a fourth-quarter profit of $700,000 on revenues of nearly $115 million. For the year, it lost more than $22 million.
Brady said the industrial side’s ability to break even during the fourth quarter is a sign of things to come.
Among other things, it could be boosted by the Boeing Co.’s new 7E7 jetliner. Unova’s Cincinnati Machine makes machinery that produces the composite materials critical for the 7E7’s more efficient design. Brady said the composites business is already expected to benefit from the production of Lockheed Martin’s F-35 Joint Strike Fighter and Airbus’ A-380 jumbo jet.
With 2003 revenues of more than $1.1 billion, Unova is the second-largest public company based in Snohomish County, and the only one traded on the New York Stock Exchange.
Eric Fetters: 425-339-3453: fetters@heraldnet.com
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