Park reports Q3 results - sales and revenue slightly down

Park Electrochemical Corp. (NYSE-PKE) reported sales of $63,653,000 for its 2008 fiscal year third quarter ended November 25, 2007 compared to sales of $68,195,000 for the third quarter of last year. Park's sales for the first nine months were $181,271,000 compared to sales of $197,551,000 for last year's first nine months.

Park reported net earnings of $8,777,000 for the third quarter ended November 25, 2007 compared to net earnings of $9,529,000 for the third quarter of last year. As previously reported, during this year's third quarter, the Company incurred approximately $500,000 in out-of-pocket expenses relating to the Company's due diligence efforts in preparation for its participation in the bidding for certain of the assets and business of Columbia Aircraft Manufacturing Corporation.

For the nine-month period ended November 25, 2007, Park reported net earnings of $25,348,000 compared to net earnings before special items of $26,893,000 for last year's nine-month period. During last year's second quarter, 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. Park recorded no special items during the nine-month period ended November 25, 2007. Accordingly, net earnings were $25,348,000 for the nine-month period ended November 25, 2007 compared to net earnings of $30,967,000 for last year's first nine-months.

Park reported diluted earnings per share of $.43 and $1.25, respectively, for the third quarter and nine-month period ended November 25, 2007 compared to diluted earnings per share before special items of $.47 and $1.32 for last year's third quarter and first nine-month period and compared to diluted earnings per share after special items of $.47 and $1.52, respectively, for last year's third quarter and first nine-month period. The effective tax rate for the third quarter ended November 25, 2007 was 25.0% compared to a rate of 23.0% for last year's third quarter.