Kewaunee Scientific Corp. engages in the design, manufacture, and installation of laboratory, healthcare, technical furniture, and infrastructure products. It operates through the following segments: Domestic, and international. The Domestic segment designs, manufactures, and installs scientific and technical furniture, including steel and wood laboratory cabinetry, fume hoods, laminate casework, flexible systems, worksurfaces, workstations, workbenches, and computer enclosures. The International segment offers products and services, including facility design, detailed engineering, construction, and project management from the planning stage through testing and commissioning of laboratories. The Company was founded in 1906 and is headquartered in Statesville, NC.
Sales for the quarter were $39,336,000, a 6.7% decrease from sales of $42,152,000 in the comparable period of the prior year. Domestic sales for the quarter were $29,287,000, down 18.8% from sales of $36,070,000 in the comparable period of the prior year. International sales for the quarter were $10,049,000, up 65.2% from sales of $6,082,000 in the comparable period of the prior year. The decrease in Domestic sales was a result of lower dealer sales in the current quarter versus those in the prior year first quarter. International sales increased as a result of a large order with a new customer and continued strength in the Indian laboratory infrastructure market.
The Company’s order backlog was $102 million at July 31, 2019, as compared to $102 million at July 31, 2018, and $101 million at April 30, 2019. The Company continues to have a strong volume of outstanding quotations globally and is aggressively pursuing these projects.
The gross profit margin for the three months ended July 31, 2019 was 17.7% of sales, as compared to 18.0% of sales in the comparable quarter of the prior year. The decrease in gross profit margin percentage was primarily due to the decline in sales with an unfavorable shift in product mix, and competitive pricing in the International segment.