Flamemaster Reports 55% Drop in 3rd-Quarter Profit

Flamemaster, a Sun Valley producer of flame-retardant sealants and coatings, said its fiscal third-quarter profit tumbled 55% from a year earlier on a 32% decline in sales.

In the quarter that ended June 30, Flamemaster’s net income fell to $83,631 from $187,177 a year earlier, while its sales dropped to $1.04 million from $1.52 million.

Flamemaster attributed the lower results to higher costs for research and development, raw materials and overhead. The company said the increased costs should be offset by higher prices that Flamemaster expects to charge on new contracts.

For the first nine months of its fiscal year, Flamemaster’s profit was off 31%, to $210,483 from $303,547, and its sales fell 23% to $3.08 million from $3.98 million.