Certron Reports Loss for 1985 Fiscal Year

Despite a sales and profits surge in its final quarter, Certron Corp. said the costs of closing a portion of its Anaheim manufacturing operation caused a loss of $133,000 for its 1985 fiscal year.

For the fourth quarter, ended Oct. 31, 1985, the Anaheim-based consumer electronics parts manufacturing company posted profits of $91,000, compared to a $9,000 loss in the same quarter a year eariler. Sales for the period were $7.9 million, up nearly 3% from the year before.

However, the company was forced into the red for the fiscal year by the $553,000 cost of closing its tape coating operations, a manufacturing plant that coated tapes used in audio cassettes with magnetic oxide. Despite the closing costs, the company still managed to do better than in its fiscal 1984, when it lost $200,000.

Sales for the full year were $26.8 million, down 5% from the $28.3 million posted the year before. Terry Frisco, Certron’s treasurer, attributed the sales decline to a drop in orders for the plastic cartridges the company makes to house ink ribbons. The sole customer for the products is Xerox Corp.’s computer printer manufacturing unit.

Despite the losses in the 1985 year, company executives said Certron is poised for a strong showing in 1986. Frisco said that by closing the Anaheim plant and shifting more operations to a plant in Mexico, the company has cut costs significantly.