EECO’s Earnings Climb 54% in Second Quarter

EECO Inc., a Santa Ana electronics manufacturer, reported net earnings of $820,000 for the second quarter, up 54% from $514,000 during the year-earlier period. Second-quarter sales were $20.3 million, up 45% from $14 million a year ago.

For the first six months of 1987, EECO’s earnings were $247,000, down 77% from $1 million during the same period in 1986. Six-month sales were $35.7 million, up 29% from $27.6 million a year earlier.

First-half profits were depressed by a net loss of $573,000 recorded during the first quarter. EECO attributed the deficit to one-time expenses associated with the closing of manufacturing facilities in Irvine, El Paso and Minneapolis and transfer of their operations to plants in Santa Ana and Phoenix.

EECO President Robert Milo said the second-quarter recovery reflects unusually good performance from the company’s keyboard, avionics and electromechanical switch operations. Second-quarter bookings were $20.5 million, up 37% from $14.9 million a year earlier. The company’s June 30 backlog was $24.6 million, up 29% from $19.1 million at Dec. 31.

“We’re very bullish for the rest of the year,” Milo said. “Because of the plant consolidations, we’re positioned to accept continued growth of our basic businesses. We’re looking for a good, strong second half.”