Furon Cuts Costs to Gain $1.7-Million Profit

Furon Co., a maker of rubber and plastic parts for manufacturers, said Wednesday that its profit rose to $1.7 million, or 20 cents a share, for the company’s latest fiscal quarter. That was a big jump from $148,000, or 2 cents a share, for the same period a year earlier.

Sales, however, were flat: $74 million for the latest period, $74.4 million a year earlier.

With sales slow, Furon said, it increased earnings by cutting costs and boosting productivity. Sales are sluggish, the company said, because its customers--manufacturers in industries from aerospace to petrochemicals--are seeing less demand for their products, too, during the recession.

For the first half of its fiscal year, which ended Aug. 1, Furon reported a profit of $4 million, or 46 cents a share, up from $1.8 million, or 21 cents a share, for the same period a year earlier. Sales totaled $153.5 million, down slightly from $155.8 million.

“While our markets have not shown signs of improvement,” said J. Michael Hagan, chairman and chief executive officer, “we are optimistic about the future due to our new product introductions and expanded market penetration both domestically and internationally.”

The Laguna Niguel company spent much of last year getting itself in shape by selling off divisions and discontinuing less-profitable products, in the process taking an annual loss of $22 million.