Shares of the metal component manufacturer SIFCO Industries (NYSE AMERICAN: SIF) are making substantial gains after reporting a jump in profits for the fourth quarter and the full year 2020.
SIFCO reported net income for the fourth quarter 2020 at $5 million or $0.86 per diluted share compared with $2.4 million or $0.43 in 2019, while its net income for fiscal 2020 was $9.2 million compared with a net loss of $7.5 million in 2019.
The company’s net sales for Q4 did fall by 6.7% to $29.1 million, compared with $31.1 million in Q4 2019.
Q4 saw COVID-19 impact SIFCO via the commercial aerospace industry and the continued disruption of global travel resulted in a decline in its net sales. SIFCO said it experienced a growth in revenue in the military aerospace market, but the pandemic's continuation has impacted the company’s customers’ orders for new aircraft in the commercial markets.
“As the effects of the pandemic weighed on the commercial aerospace market in the year and is expected to continue to impact such segment, we saw growth in our revenues from our support of the military aerospace market,” commented Peter Knapper, CEO of SIFCO.
“Operationally and financially, we saw benefits of the consolidation completed over the last few years as well as our continuous improvement journey,” Knapper added.
Shares of SIFCO are currently up 45.15% at $5.70, having climbed over 70% to highs of $6.92 earlier in the day.