UFP Technologies, Inc. (NASDAQ:UFPT), an innovative designer and custom converter of foams, plastics, and natural fiber materials, today reported net income of $2.7 million or $0.37 per diluted common share outstanding for its third quarter ended September 30, 2016, compared to net income of $2.0 million or $0.28 per diluted common share outstanding for the same period in 2015. Sales for the third quarter were $37.2 million, 8.1% higher than third quarter sales of $34.4 million in 2015. Net income for the nine-month period ended September 30, 2016 was $6.5 million or $0.89 per diluted common share outstanding compared to $5.9 million or $0.82 per diluted common share outstanding for the same 2015 period. Sales for the nine-month period ended September 30, 2016 were $109.6 million compared to sales of $104.9 million for the same period in 2015.
“We continue to make solid progress on a number of fronts,” said R. Jeffrey Bailly, Chairman & CEO. “We increased revenue by 8% in Q3, led by a nearly 20% rise in medical sales. Net income increased 34%, as a $1.7 million settlement for raw material overcharges more than offset manufacturing inefficiencies related to our plant consolidations and some one-time expenses incurred during the quarter.”
“As we work to re-qualify parts affected by these consolidations, our focus remains on delivering high-quality parts on time and bringing new programs online smoothly,” Bailly continued. “Initiatives to streamline our manufacturing processes will follow, and we anticipate significant efficiency improvements once our consolidation and re-qualification efforts are complete.”
“With a robust pipeline of new growth opportunities, the addition of new sales and engineering talent, and strong operational synergies still to be realized, we remain bullish about our future,” said Bailly.
UFP Technologies is an innovative designer and custom converter of foams, plastics, and natural fiber materials, principally serving the medical, automotive, consumer, electronics, industrial, and aerospace and defense markets. The UFP team acts as an extension of its customers’ in-house research, engineering, and manufacturing groups, working closely with them to solve their most complex product and packaging challenges.