Park Electrochemical reports Q2 results

Park Electrochemical Corp. (NYSE:PKE) reported sales of $66,518,000 for its 2007 fiscal year second quarter ended August 27, 2006 compared to sales of $52,442,000 for the second quarter of last year. Park's sales for the first six months were $129,356,000 compared to sales of $108,118,000 for last year's first six months.
 
Park reported net earnings before special items of $8,470,000 for the second quarter ended August 27, 2006 compared to net earnings of $6,057,000 for last fiscal year's second quarter ended August 28, 2005. During the current year's second quarter, the Company recorded a pre-tax charge of $1,316,000 in connection with the termination of an insurance arrangement with Jerry Shore, Park's founder and former Chairman, and recognized a $499,000 tax benefit relating to this insurance termination charge. During the quarter, Park also recognized a tax benefit of $3,500,000 relating to the elimination of certain valuation allowances previously established relating to deferred tax assets in the United States and a tax benefit of $1,391,000 relating to the elimination of reserves no longer required as the result of the satisfactory completion of a tax audit. Accordingly, net earnings were $12,544,000 for the second quarter ended August 27, 2006 compared to net earnings of $6,057,000 for last fiscal year's second quarter ended August 28, 2005.

For the six-month period ended August 27, 2006, Park reported net earnings before special items of $17,364,000 compared to net earnings of $12,444,000 for last year's first six-month period. As mentioned above, the Company recorded a pre-tax charge of $1,316,000 in connection with the termination of an insurance arrangement and recognized a tax benefit of $499,000 relating to the insurance termination charge, a tax benefit of $3,500,000 relating to the elimination of valuation allowances and a tax benefit of $1,391,000 relating to the elimination of reserves no longer required. Last year's six-month period included an after-tax charge of $1,059,000 for employment termination benefits related to the reduction in workforce at the Company's Neltec Europe SAS subsidiary in Mirebeau, France, which the Company recorded in the first quarter ended May 29, 2005. Accordingly, net earnings were $21,438,000 for the six-month period ended August 27, 2006 compared to net earnings of $11,385,000 for last year's first six-months.

Park reported diluted earnings per share before special items of $.42 and $.86, respectively for the second quarter and six-month period ended August 27, 2006 compared to $.30 and $.62 for last year's second quarter and six-month period. Diluted earnings per share were $.62 and $1.06, respectively, for the second quarter and six-months ended August 27, 2006 compared to $.30 and $.57, respectively, for last year's second quarter and first six-month period.