Air Bag Sales Boost Profits at Special Devices

Special Devices Inc. continued its profit surge, thanks to its strong air bag business. The company posted a 45% increase in its fourth-quarter net income on a 35% rise in sales.

For its quarter that ended Oct. 31, Special Devices had a net profit of $3.5 million, compared to a $2.4-million profit in the same period a year earlier. Sales in the latest quarter rose to $43.2 million, up from $32.1 million a year earlier.

For its full fiscal year, Special Devices saw its net income soar 44% to $10.7 million, compared to a $7.5-million profit in fiscal year 1996. Sales in the latest fiscal year rose 35% to $140.5 million, up from $104.5 million.

The Newhall-based company has made a dramatic shift this decade from depending on defense contracts to thriving in the commercial marketplace. Automotive sales now account for 80% of the company’s business.