Farrel posts $1.25 million loss for first quarter

ANSONIA, Conn. (May 14)—Farrel Corp. slipped $1.25 million into the red for the quarter ended March 30 despite a 24.4-percent increase in sales revenue. The 2003 first quarter loss was about 64 percent deeper than the $760,000 loss reported a year ago. Sales rose to $9.7 million on the strength of higher European deliveries, Farrel said. Machinery orders received during the three-month period were down slightly from a year earlier, but the product backlog—machinery on order to be shipped in the coming 12 months—grew 13 percent to $24.1 million. Regarding future results, Farrel said many of its traditional customers and markets are operating in excess capacity environments, thereby reducing the number of projects for plant expansion and modernization. In addition, the company is experiencing increased pricing pressures from competitors in an overall smaller market.