OroAmerica Reports 61% Profit Drop in 1st Quarter

OroAmerica Inc., a Burbank manufacturer and distributor of gold jewelry, reported that its profit declined 61% in its fiscal first quarter that ended March 29, to $650,000 from $1.65 million in net income a year earlier.

The company’s net sales rose 9% in the latest quarter, to $48.1 million from $44.2 million.

OroAmerica said the drop in earnings was primarily due to inventory accounting changes because of a substantial reduction in the amount of gold owned by the company.