Weather Problems Spur Loss for Stang Hydronics

Severe winter weather threw a damper on the rental of construction equipment in the Midwest, resulting in first-quarter net loss of $104,202 for Stang Hydronics Inc., compared to a loss of $85,263 for the firm’s year-earlier quarter.

The San Clemente-based manufacturer of aircraft, mining and construction equipment did, however, post a 15% increase in revenues for the quarter ended Dec. 31. Revenues climbed to $7.2 million compared to $6.3 million during the same 1983 quarter.

The extremely bad winter weather in cities like Omaha and Tulsa, where the company rents construction equipment to contractors, has damaged business, said Michael J. Sloyan, the company’s treasurer. “Our normal rental of that equipment was frozen out,” he said.

John W. Stang Jr., president and chairman, said that while the company’s manufacturing operations were profitable, “All other areas of the business showed losses.” As the winter weather improves, “we fully expect this (contract rental equipment) segment of our business to return to its profitable mode,” he said.

Stang employs 325 workers, and despite the recent losses, Sloyan said no layoffs are planned.