Wynn’s International Sees Net Earnings Rise
Crediting strong sales as well as the results of a cost-control program implemented in 1985, Wynn’s International Inc. said that net earnings during the first quarter increased 23% to $1.2 million from $975,000. Revenues for the Fullerton-based auto parts and accessory maker rose to $77.7 million from $51.8 million.
More than half of the new sales, about $14 million, came from Wynn’s recently acquired Precision Rubber Products Corp. subsidiary, company officials said. The Lebanon, Tenn., molder of rubber seals was acquired by Wynn’s in November for $31 million in cash and up to 70,000 shares of common stock.
Although increased sales were an important factor behind the first-quarter’s strong showing--which followed a $5.1-million loss for the fourth quarter of 1985--John F. Lillicrop, Wynn’s president, credited cost-control as the key reason for the renewed profits.
In particular, he said, Wynn’s has reduced inventory levels while improving the systems by which it uses anticipated sales to buy materials from its suppliers. “Having better forecasts of our customers’ needs allows us to purchase in a more orderly fashion and work out better pricing with our vendors,” Lillicrop said.