Indianapolis-based Hurco Companies Inc. (Nasdaq: HURC) is reporting a first quarter net loss of $893,000, compared to net income of $6.6 million during the same period a year ago.
The company says since the beginning of its fiscal year, operating results have been adversely affected by the economic slowdown in Germany, trade tensions between U.S. and China, the U.K. Brexit activities and the international business disruption due to the outbreak of coronavirus.
Hurco designs and produces CNC machining tools for metal cutting and forming industries.
“Many of our customers deferred or eliminated investments in capital equipment, which we attribute largely to the uncertainty these events created,” said the company earnings statement.
During the first quarter of fiscal 2020, sales declined in all regions. Hurco said overall new orders for the first quarter are off 33% with orders in the Asian Pacific market sliding 43% and Europe down 35%.
“Although the last four fiscal years represented our highest annual revenue periods in company history, a variety of recently developing market and industry factors combined to significantly soften global demand, and increase pricing pressures, for machine tool products during our first quarter of fiscal 2020,” said Hurco Chief Executive Officer Michael Doar. “Nevertheless, we firmly believe that our fiscally-conservative culture and cost-cutting measures that we started implementing in fiscal 2019 helped to minimize the impact of the steep sales decline we experienced during the period.”
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