• Q1 profit decline 93.9% to $17,000
  • Sales increase 11.9% to $11.3m
  • Operating expenses up 21.1%

Apparel fastener, zipper and trim supplier Talon International saw its net profit almost halve during the first quarter, due to higher costs. 

Net income reached US$17,000 for the three months ending 31 March, compared to $280,000 in the same period of last year.

Sales increased 11.9% to $11.3m, driven by strong trim sales, which jumped 28.1% to $5.5m. Zipper sales, however, were virtually flat at $5.8m, reflecting softness within mass merchandise brand customers.

Operating expenses were up 21.1% to $3.6m, while general and administrative expenses rose 29.4% to $2.2m during the period.

Nonetheless CEO Lonnie Schnell said: "Once again we are pleased to see continued growth and improvement throughout our business, even during our historically slowest quarter of the year.

"We saw solid performance across our product lines, especially in Trim, as our positions with core customers continued to grow and we concentrated on adding new global brand nominations to our marquee list of customers. We ended the first quarter strongly, achieving profitability strictly from operations."