Wyle Labs’ Profits Fell in Quarter but Rose in Year

Despite a decline in fourth-quarter results because of a softness in its semiconductor business, Wyle Laboratories said sales and net income for the full year hit records.

The El Segundo-based company said sales in the year ended Jan. 31 rose 21% to $354.6 million from $293.6 million the year before. Net income rose 32% to $9.4 million from $7.2 million. For the year, Wyle’s three operating groups--electronics marketing, scientific services and systems and industrial manufacturing--all reported record sales and earnings.

In the fourth quarter, however, sales declined 10% to $75.8 million while net income fell to $668,000 from last year’s $2.6 million.

Wyle said sales and profits in the quarter were lower for the electronic marketing group, which had suffered since midyear by a backup in inventories because of cancellations in semiconductor orders. By year-end, however, inventories were in line “with the current market,” Wyle said.

Its scientific services and systems group posted record sales and profits for the fourth quarter, while the industrial manufacturing group experienced a slight dip in sales and profits because of a softness in demand for electronics cabinetry.