A “perfect storm” of events in the small appliance segment was blamed for the overall drop in sales at National Presto, company officials said in announcing fiscal results for 2016.
Net consolidated sales for the previous year decreased from 2015’s levels by $13.7 million or 4% to $341.9 million due to a $17.8 million decline at the housewares/small appliance segment. This loss was offset in part by a $4.1 million increase in the company’s defense segment.
According to the company, the decline in the company’s housewares/small appliance division was the result of a “perfect storm” of events that included a struggling retail environment, changes in customers’ product assortments and promotions as well as sourcing issues.
Net consolidated earnings improved by $4.1 million or 10% to $44.6 million ($6.39 per share) from 2015’s $40.5 million ($5.83 per share).
Maryjo Cohen, president of National Presto, noted that the company’s sale of its absorbent products segment in January has had a “significant effect” on both the 2016 net sales and earnings lines as the segment’s business has been reclassified as discontinued.