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Net earnings for the quarter were $1,212,000, or $0.47 per diluted share,up 113% from net earnings of $569,000, or $0.23 per diluted share, for thesecond quarter of the prior year. Earnings benefited from a strong performancefrom the Company's domestic operations, significantly improved profit margins,and continued growth of its international operations.
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Sales for the quarter were $24.7 million, up 15.6% from sales of $21.4million in the second quarter of the prior year. Sales from domesticoperations increased to $20.1 million, up 17.9% from the same period lastyear. Sales from international operations increased to $4.6 million for thequarter, up 6.9% from the same period last year.
Net earnings for the six months ended October 31, 2007 were $1.9 million,or $0.74 per diluted share, an increase of 169% from net earnings for the sameperiod last year of $702,000, or $0.28 per diluted share. The gross profitmargin for the six-month period increased to 21.6% from 17.7% in the sameperiod last year. Sales for the six months ended October 31, 2007 were $45.5million, an increase of 11.9% from sales of $40.7 million in the same periodlast year.
Incoming orders remained strong during the quarter. The order backlogincreased for the fourth consecutive quarter to a record $54.9 million atOctober 31, 2007, which was slightly above the end of the previous quarter andup from $34.3 million at October 31, 2006.
The Company's balance sheet further strengthened during the quarter. Bankborrowings and capital lease obligations declined to $3.0 million at October31, 2007, down from $9.1 million at October 31, 2006. The debt-to-equity ratiowas .12-to-1 at the end of the quarter, down from .35-to-1 at the end of thesame period last year. Cash on hand was $1.8 million at the end of thequarter, as compared to $1.0 million at the end of the same period last year.Working capital was $14.0 million at October 31, 2007, up from $11.6 millionat the end of the same period last year.
The Company's international operations continued to execute well duringthe quarter. To allow the Company to take advantage of rapidly growing salesopportunities in Asia and the Middle East, during the quarter the Company'sBoard of Directors approved the relocation and expansion of the Company'smanufacturing facility in Bangalore, India to a new much larger facility inthe Bangalore area.
"We remain optimistic about Kewaunee's long-term success andprofitability, both in the domestic and international markets," said WilliamA. Shumaker, President and Chief Executive Officer. "We look forward tobuilding on the progress made in our domestic operations, and we have highexpectations for continued growth in sales and earnings of our internationaloperations, particularly after our new manufacturing facility in Bangalorebecomes operational early next fiscal year. Regarding the remainder of ourcurrent fiscal year, we expect our significant progress to continue."
The Company also announced today that its Board of Directors approved acash dividend of seven cents per outstanding share to stockholders of recordat the close of business on November 30, 2007, payable on December 14, 2007.
Kewaunee Scientific Corporation is a recognized leader in the design,manufacture, and installation of scientific and technical furniture. TheCompany's corporate headquarters and domestic manufacturing facilities arelocated in Statesville, North Carolina. The Company also has subsidiaries inSingapore and Bangalore, India that serve the Asian markets. KewauneeScientific's website is located at http://www.kewaunee.com.
Certain statements in this release constitute "forward-looking" statem
