Swedlow Profit Drops 41% in Third Quarter

Blaming extra handling costs imposed by increased orders for its products, Swedlow Inc. of Garden Grove said Thursday its profits for the third quarter fell 41% to $351,000 from $597,000.

For the period ended Dec. 29, 1985, the company, which makes plastics used in military aircraft, had sales of $13.2 million, up 12% from the $11.8 million in the prior year.

David A. Swedlow, chairman and chief executive, said rising sales since late last year would pay off in higher profits in the future.

For the first nine months of its 1986 fiscal year, Swedlow reported profits of $991,000, down 29% from $1.4 million. Sales of $39.5 million were up 18% from $33.5 million.

The company said its $56.6-million backlog at the end of the quarter was the highest in its history and was 39% above the $40.6 million of a year ago.

“As our record backlog indicates, the company is well-positioned to continue its long-term growth, despite temporary quarterly earnings fluctuations,” Swedlow said in a prepared statement.

Earlier this month the Federal Trade Commission asked a federal court to block Swedlow’s proposed merger with PPG Industries Inc., a Pittsburgh glass maker. The FTC suit claims that the $42-million merger would substantially reduce competition in the aircraft-window and canopy market which both companies currently serve.

Both companies have promised to fight the FTC move and Swedlow shareholders have already approved the move which remains on hold until the court acts on the FTC suit. The hearing began Thursday, and Swedlow said it expects a decision in early February.