Sypris Reports First Quarter Results

LOUISVILLE, Ky.--Sypris Solutions, Inc. today reported revenue of $81.7 million for the first quarter compared to $106.3 million for the prior year period. The Company reported a net loss of $11.3 million or $0.62 per share for the first quarter compared to net income of $0.4 million, or $0.02 per diluted share for the prior year period. The net loss for the quarter ended April 5, 2009 includes $2.0 million, or $0.11 per share, of charges associated with the implementation of the Company’s previously announced restructuring program.

“The results for the quarter were in line with our expectations, reflecting the continued decline in the economy and its impact on demand in the markets served by our Industrial Group,” said Jeffrey T. Gill, president and chief executive officer. “The 46% decline in comparable period revenue for this Group more than offset the 21% increase in sales posted by our Electronics Group. The results for the quarter easily could have been more challenging had it not been for the positive impact of the restructuring initiatives and the focused efforts of our management team in this segment to contain costs and adjust inventories on a rapid basis.

“Within the Electronics Group, our Aerospace & Defense segment posted a 29% increase in revenue for the quarter, while our Test & Measurement segment posted a 7% increase in the top line, marking the ninth consecutive quarter of comparable period growth for this segment. As a result, our Electronics Group now represents 54% of portfolio revenue compared to 34% for the prior year period and is poised for margin expansion during the balance of this year as a result of a focused drive to improve processes, increase productivity and reduce costs.

“In light of the continued softness in demand in the markets served by our Industrial Group, we have accelerated our restructuring initiatives across the Company with the goal to pull forward the expected savings. When completed, we expect to benefit from an estimated $25.0 million per year of cost savings, with 75% to 80% of those benefits expected to be realized as early as 2010. These savings will be generated across the Company’s platform and are expected to have a positive impact on all businesses going forward.”