Hurco Companies 1Q profit triples as demand rises

Hurco Companies 1st-quarter profit triples as demand from factories in Europe rebounds

Associated Press

INDIANAPOLIS (AP) -- Machine tool maker Hurco Companies Inc. said its fiscal first-quarter profit more than tripled, as stronger demand from customers in Europe boosted revenue. Shares jumped 19 percent Friday on the results.

The company, which makes computerized machine tools, said its net income for the quarter ended Jan. 31 was $4.6 million, or 71 cents per share, up from $1.5 million, or 24 cents per share, in the same period a year before.

Revenue rose 29 percent, to $51.1 million, from $39.7 million in the prior-year period.

Hurco Companies makes the kind of tools that are used by precision manufacturers. Hurco Companies said it has seen a rebound in European industrial production, even though European nations have been struggling to contain a financial crisis in the region.

The company said that the number of orders from customers Europe rose 15 percent during the quarter compared with last year. That's twice the jump it saw in North America, where new orders rose 6 percent. Orders in Asia were flat.

The strong demand in Europe boosted revenue there by 41 percent compared to the year before, while North American revenue rose 14 percent. Revenue in Asia was up 19 percent.

The company said it continues to see the industrial sector recovery gain strength in both Europe and the North America.

Shares rose $4.30, or 19 percent, to close at $26.97.

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