Presented below are the comparative operating results for the Company for the periods ended in December 2022 and December 2021.
Our improved performance is the result of solid execution at the operating level, including our international operations, which are facing more hurdles than our North American businesses, who benefited from continued high demand for precision granite products and stable demand for the Company's portfolio of precision measuring tools and saw blades sold through industrial distribution.
Net sales in the second quarter were $66.8 million, an increase of $5.5 million or 9% compared to $61.3 million in the second quarter of the prior year. North American businesses continued to outperform the prior year, delivering an increase in net sales of 21%. This more than offset a 5% decline in the Company's international operations, which were negatively impacted in Europe as a result of economic conditions and the on-going war in Ukraine.
Operating income for the quarter increased $1.7 million to $5.9 million or 8.9% compared to $4.2 million or 6.9% in the second quarter of the prior year. Primary drivers were improved gross margin and reduced selling, general and administrative expenses as a percentage of net sales from 24.1% in the second quarter last year to 23.3% in the second quarter this fiscal year.
Net income for the quarter was $3.1 million or $0.42 per diluted share, an improvement of $0.6 million or 23.9% compared to net income of $2.5 million, or $0.34 per diluted share for the second quarter in the prior year.
While the macro-economic landscape remains volatile and the geopolitical climate uncertain, our associates around the world continue to navigate the challenges and are focused on continuing our positive trajectory in the second half of our fiscal year.
D. A. Starrett President and CEO
SUMMARY OF CONSOLIDATED RESULTS
(in thousands of dollars except share data)
Three Months Ended December
Six Months Ended December
Fiscal 2023
Fiscal 2022
Fiscal 2023
Fiscal 2022
Net sales
$
66,775
$
61,318
$
127,236
$
122,832
Cost of goods sold
45,199
42,368
85,460
83,737
Gross margin
21,576
18,950
41,776
39,095
Restructuring charges
54
-
244
-
Selling, general and administrative expenses
15,561
14,749
31,855
30,762
Operating income
5,961
4,201
9,677
8,333
Other (expense), net
(1,121)
(662)
(1,797)
(436)
Income before income taxes
4,840
3,539
7,880
7,897
Income tax expense
1,709
1,011
2,693
2,137
Net income
$
3,131
$
2,528
$
5,187
$
5,760
Basic income per share
$
0.42
$
0.35
$
0.71
$
0.80
Diluted income per share
$
0.42
$
0.34
$
0.69
$
0.77
The above figures are in part estimates and are subject to audit and year-end adjustments. Except for historical information contained herein, the matters discussed
may involve forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially, including statements
concerning future financial performance, economic and political conditions, currency fluctuations and foreign operations.
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The L.S. Starrett Company published this content on 10 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 February 2023 14:01:04 UTC.
The L.S. Starrett Company is engaged in the business of manufacturing various products for industrial, professional and consumer markets. The Company offers measuring and cutting products to the market through multiple channels of distribution throughout the world. Its products include precision tools, electronic gages, gage blocks, optical, vision, laser measuring equipment, custom engineered granite solutions, tape measures, levels, chalk products, squares, band saw blades, hole saws, hacksaw blades, jig saw blades, reciprocating saw blades, M1 lubricant and precision ground flat stock. Its tools and instruments are sold throughout North America in over 100 other countries. The Company primarily distributes its precision hand tools, saw and construction products through distributors or resellers both domestically and internationally. It principally serves the global manufacturing industry, including metalworking, construction, machinery, equipment, aerospace and automotive markets.
THE L.S. STARRETT COMPANY 
