Santa Ana’s EECO Reports $4.1 Million for 3rd Quarter

EECO Inc., a Santa Ana-based manufacturer, reported net income of $4.1 million for the third quarter ended Oct. 1, contrasted with net income of $255,000 for the like period a year ago. The 1989 quarter includes a gain of $6.8 million from the previously reported sale of its Avionics business. Sales dropped 34%, to $10.5 million from $15.7 million.

The company lost $612,000 for the first three quarters of the year, contrasted with net income of $286,000 in 1988. Year-to-date sales for 1989 declined 19%, to $37.9 million from $46.9 million.

EECO attributed the lower sales levels in 1989 to price erosion in the keyboard business and a decline in volume in all its businesses due to the inability to meet customer demand. That was caused by disruptions resulting from facility moves and inadequate material planning and control, the company said.

EECO manufactures computer keyboards, electronic key pads, electromechanical switches and hotel computer systems worldwide.