Zero Quarterly Earnings Off; Annual Profit Is Up

Zero Corp. reported 8% lower earnings, despite 5.4% higher sales, in its fourth quarter ended March 31 in contrast with the same period a year ago, but the Burbank company’s annual profit was up for the 14th year in a row.

During the fourth quarter, Zero earned $3.1 million, or 25 cents a share, on revenue of $34.6 million. For the year, Zero’s earnings rose 8.2% on 3.5% higher sales. Net income was $12.8 million, or $1.03 a share, on revenue of $128.7 million.

Zero’s quarter was off largely because earnings for the period a year ago reflect a gain of about $300,000 from a tax forgiveness related to the company’s overseas operations, said James Oesterman, vice president for finance.

He said last year’s results were affected by the sale in September of Zero’s 40% stake in Ocean Technology and its acquisition in December of Electronic Solutions.

The Ocean Technology divestiture reduced Zero’s earnings, and Electronic Solutions did not contribute as much as anticipated, Oesterman said.

Zero makes enclosures and accessories for the electronics industry, including cabinets, cases and cooling equipment. It also makes Zero Halliburton aluminum luggage and camera cases.