Net sales increased 15% to $118.6 million compared to $103.6 million in the prior year quarter. Net earnings decreased 13% to $6.6 million, or $0.93 per share, compared to $7.6 million, or $1.07 per share, in the prior year. Operating profit fell to $8.0 million from $9.0 million in the same period last year. The Defense segment backlog grew to $1.84 billion, providing significant long-term revenue visibility. The Housewares/Small Appliances segment experienced a 16% sales decline due to warehousing startup issues.