Summa Industries: The Fullerton manufacturer of industrial...

Summa Industries: The Fullerton manufacturer of industrial equipment posted lower profit for the second fiscal quarter ended Feb. 2, while sales increased.

Summa reported second-quarter net income of $22,000, or 1 cent a share, including a loss of $135,000 from subsidiary Morehouse-Cowles Inc., which is for sale. A year ago, net income totaled $99,000, or 6 cents a share, with a loss of $49,000 from discontinued operations. Sales rose 16% to $2.9 million from $2.5 million.

The company said that it incurred higher operating expenses during the recent quarter at its KVP Systems subsidiary, which moved to a larger facility and increased its sales force significantly.

Results also included charges that the company expected in conjunction with the divestiture of Morehouse-Cowles, which makes equipment for the chemical processing industry. Summa said Tuesday that negotiations to sell the subsidiary to a private buyer had broken down, and that the company has resumed talks with other potential buyers.

For the first half, net income declined to $113,000, or 7 cents a share, from $251,000, or 16 cents a share, for the first six months of the prior fiscal year. Sales increased 18% to $5.8 million from $4.9 million.