Sparton Corp. (NYSE: SPA) now in its 114th year, is a provider of complex and sophisticated electromechanical devices with capabilities that include concept development, industrial design, design and manufacturing engineering, production, distribution, field service, and refurbishment. The primary markets served are Medical & Biotechnology, Military & Aerospace, and Industrial & Commercial. Headquartered in Schaumburg, IL, Sparton currently has eight manufacturing locations and four engineering design centers worldwide. SNNLive spoke with Cary Wood, President and CEO of Sparton Corp. at Singular Research's 9th Annual "Best of the Uncovereds" Conference 2014 in Bel Air, CA.
Sparton Corp. is a manufacturing services company that hits a variety of sectors and also owns a family of products in the anti-submarine warfare segment. Mr. Wood explains that the anti-submarine products are “certainly a gem of our business. The anti-submarine warfare space more recently have been awarded a significant contract with the US Navy, almost to a billion dollars, five years is a dramatic uptick in the volume we’ve seen in the last few years. High-margin contributor to our business overall, certainly going to have its impact on earnings.”
Other than the defense sector, Sparton “focus[es] primarily on medical and complex industrials. Since simply put, our strategic view is that as long as we’re a business focused on some fairly complex-end markets, involved with some complex devices and we build the infrastructure and the strategy around that, it makes it a tough barrier for people to get into. So we’ve been rewarded with fairly good margins and we’ve certainly shown that, having doubled on a gross margin basis the last few years.”
Considering the past couple years’ growth margins, Mr.Woods is looking forward to 2015, he explains, “Just to use 2014 as a framework, we grew 27% year-over-year with 5% of that being organic. You know, we expect that we’re going to continue to see good organic growth. We’ve guided at 3-5% the last several years and we’ve stayed well within that band…We’re going to continue to look at other global and even domestic regional opportunities for us to give us some growth.” For more information, check out their website at www.Sparton.com.
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