Newport Corp. Earnings Drop 34% for Year

Blaming cutbacks in domestic defense spending, Newport Corp., a manufacturer of equipment for the laser and electro-optical markets, said its earnings fell 34% to $4.7 million for its 1990 fiscal year, down from $7.1 million a year earlier.

While domestic sales were depressed, a 26% growth in international business boosted the company’s revenue for the year ended July 31 to $58.8 million, up 3% from $57.3 million.

Newport officials said that earnings failed to keep pace with the growth in sales because of costs associated with expansion into international markets.

Tom Galantowicz, Newport’s president, said: “We expect continuation during 1991 of the strong international sales growth aided by a higher backlog, new products and increased international marketing efforts. The domestic market, however, remains uncertain.”

Dean Hodges, senior vice president of marketing and sales, said Newport is trying to lessen its dependence on the defense industry by diversifying into other areas such as instruments used for biological research.

For the fourth quarter, earnings declined to $1.2 million from $1.7 million for the same quarter of fiscal 1989, while revenue rose to $16.1 million from $14.6 million.