Third quarter net sales down 43% for Keithley

The test and measurement specialist cited weak global economic conditions as the primary cause, while the effect of a 9% stronger US dollar also had a negative impact on sales growth by approximately three percentage points. Keithley also reported a nine month loss of $46mn compared with a $2mn profit in the first three quarters of 2008. Chairman, president and chief executive officer, Joseph Keithley said that he was disappointed with the operating losses. He explained that this was caused by the depressed level of orders from the production related customers as a result of their reduced spending. He said: "We have greatly reduced our operating costs in response to our customers' reduced spending; however, these efforts have not been enough to offset the gross margin loss on lower sales. Of note, orders increased sequentially and several of the industry segments that we serve have recently reported improved results. Additionally, we were pleased with our working capital management during the quarter."