In a statement, CEO Patrick Lynch said the company’s sales in China were “softer than anticipated” during the fiscal first quarter due to concerns about the trade dispute between the US and China.
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But Lynch expects the trend will improve in fiscal 2019 and the company still expects full-year earnings to be $2 to $2.10 per share, with revenue in the range of $60 million to $61.5 million.
“While macro-related issues, such as the continued concern over global trade, have caused certain customers to act more cautiously, we continue to believe our global footprint and diverse product offerings provide NTIC with significant flexibility to withstand evolving market dynamics,” Lynch said in a statement.
The company, which is based in Circle Pines, Minnesota, reported net income of $0.32 per share on revenue of $14.1 million in the three months ending on November 30.
The increase in revenue stemmed largely from a jump in sales of ZERUST oil and gas products, corrosion prevention products for the oil and gas industry, and sales of Nature-Tec products, a portfolio of biodegradable polymer resins, the company said.
Quarterly sales of ZERUST corrosion prevention products rose 71% to $10.1 million from the year-ago quarter while Nature-Tec sales came in 28% higher over the same period at $4 million.
At the close of November, Northern Technologies was sitting on working capital of $24.17 million and had no debt.
Northern Technologies shares shed 5.6% to hit $28.55 in Tuesday’s morning trading session.
Contact Ellen Kelleher at [email protected]