Safety Components Back in Black, Plans Expansion

Safety Components International Inc., the Costa Mesa manufacturer of automotive air bags and ordnance components, on Monday reported a return to profit for its recently ended fiscal year and said it planned to expand overseas operations by building a plant in the Czech Republic.

For the fiscal year ended March 31, profits rose to $2.13 million, or 53 cents a share, from a loss of $384,000 the previous fiscal year.

Revenue increased to $51.78 million, more than double the $22.44 million posted for the previous year. Company officials said the automotive division’s sales for the recent year were $43.07 million, up from $14.97 million, while the defense division’s sales increased to $8.7 million from $7.47 million.

For its fourth quarter, the company reported profit of $901,000, or 22 cents a share, nearly six times the $155,000, or 4 cents per share, posted in the same quarter a year earlier. Sales were $17.5 million, up from $7.3 million.

The planned plant in the city of Jevicko, west of Prague, will allow the company to respond to increasing demand for air bag technology in an expanding European market, a company official said.

The Czech Republic was selected after an extensive study of factors such as low-cost labor availability and access to telecommunications and power.

Safety Components went public a year ago saying its goal was expansion. Europe, where competitive pressures are increasing consumer demand for air bags, tops the list of target markets, company leaders have said.

The 1,000-employee company, which already has facilities in Mexico and England, did not disclose the projected cost of the planned Czech venture. Safety Components hopes to close a deal on the property within 60 days and break ground for the plant by late summer.

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

Safety Components International at a Glance

* Headquarters: Costa Mesa

* President/CEO: Robert A. Zummo

* Employees: 1,000

* Went public: May, 1994

* Business: Manufactures automobile air bags and ordnance components

* Facilities: U.S., Mexico and Europe

Source: Safety Components International;

Researched by JANICE L. JONES / L.A. Times