Armstrong Industrial Corporation, foam and rubber component manufacturer specialising in noise and vibration reduction for the automotive and electronics industries, says revenue grew 33.2% y-o-y to $55.5 million and net profit soared 125.9% y-o-y to $7.1 million for the 3 months ended 30 June 2010 (2Q2010).

On a half-year basis, Armstrong’s net profit has already surpassed full year FY2009 net profit.

All business segments reported growth with the group’s Automotive and Consumer Electronics businesses setting the pace. Fuelled by Thailand’s and China’s automotive industry, the group’s Automotive sales grew a blistering 65.6% yoy to $18.0 million. The Consumer Electronics business, Armstrong’s largest revenue contributor, followed suit with a 37.8% y-o-y increase to $19.7 million.

With higher-margin products from the Automotive segment and economies of scale enjoyed on the production floor, gross profit outpaced revenue growth jumping 53.6% to $15.9 million. Consequently gross profit margin improved from 24.9% to 28.7%.

Good cost management has been a consistent strength of the group. Distribution and selling expenses increased in line with sales growth but the group was able to cap administrative expenses increases to just 17.7% ($5.1 million). As a result net margin improved from 7.5% in 2Q2009 to 12.7% in 2Q2010.

The group generated $5.2 million of cash from its operation, cash and bank balances however decreased from $33.6 million in 1Q2010 to $29.0 million in 2Q2010 following the dividend payout of $8.0 million. In comparison to 2Q2009, cash and bank balances increased 62% from $20.7 million.