Louisville manufacturer Sypris Solutions just reported financials for the second quarter of 2015, and it saw the firm steeply down on a year-over-year basis for both revenues and net income. Sypris has been dogged by an ongoing dispute with the firm that had been its single biggest customer.
Sypris — which makes trailer beams, axle shafts, and other related parts used in cars, trucks, and farm equipment — reported these financial figures on Aug. 18.
For the quarter, which ended July 5, Sypris reported sales of $32.9 million, a huge drop from the prior year’s $83.2 million. For the six-month period that ended July 5, Sypris had sales of $64.8 million, versus $159.8 million the prior year.
Sypris also had a net income loss of $8.4 million for the quarter, versus the prior year’s positive $370,000 in net income. For the first six months of this year, Sypris had negative net income of $21.5 million, versus a positive $2 million in the black the year before.
These negative figures come in the wake of Sypris’ ongoing disputes with Dana Holding Co., a firm that makes powertrain systems. Sypris had a contract with Dana that went through the end of 2014, and since then the two parties have been unable to come to terms. This has proven a heavy burden for Sypris as Dana was responsible for 59 percent of Sypris’ business in 2014.
Sypris was reported to have laid off 300 workers from the start of 2015 through this past April, and to have lost at least $200 million in income thanks to its ongoing travails with Dana.
In a prepared statement, Sypris CEO Jeffrey T. Gill tried to see the positives. “Sypris … continued to adjust manpower and overhead expenses to reflect the cessation of shipments to Dana, while optimizing our ability to bring in potential new business,” he said. “We believe that these adjustments and reduced (selling, general and administrative expenses) spending will make a positive contribution to the company’s overall financial performance during the second half of 2015.”
Investors have been skeptical about Sypris’ ability to turn things around in 2015. For the year, the firm’s stock is down 50 percent.
This poor stock performance has led to some grumbling on the firm’s Yahoo chat page. “Even I can read bankruptcy within (six) months if not next week,” wrote one commenter. “The business combination is a pipe dream. Man, I know how to pick the losers this year.”