Powin sales, profits drop as expenses climb
By Erik Siemers, Business Journal staff writer
Business Journal staff writer
Powin Corp. on Monday reported a sharp drop in first-half profits as investments in new businesses, including a new energy subsidiary, drove expenses.
The Tigard-based company (OTCBB: PWON), a diversified manufacturer of products ranging from gun safes and cookware to truck parts and furniture, reported a nearly 3 percent drop in sales through six months to $23.7 million.
Net income, meanwhile, fared much worse, falling from $563,160 last year to $79,485 this year.
Chief Financial Officer Ronald Horne said revenue from the company’s original equipment manufacturing segment fell after a key customer lost a big chunk of sales that would have provided Powin-made product to a major national chain store.
Meanwhile, Powin’s operating expenses increased 45 percent to more than $2.8 million as the company invested in new business segments.
That includes Powin Energy, a division created last December to focus on manufacturing products such as fluorescent lighting, wind energy products, and a line of lithium-ion batteries.
The company is also developing its own line of exercise equipment, called Gladiator, and has developed a program to help U.S. manufacturers introduce and distribute products in China.
“Powin Corp. is investing in new segments which increased our consolidated operating expenses but, we believe, returns will start showing for the company in this year’s third and fourth quarters,” Horne said in a news release.
Powin shares were trading for $1 on Monday and have traded between 30 cents and $2.30 per share in the past 52 weeks.
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