Shelton-based Acme United Corp. reported record net income for the second quarter of 2025, buoyed by strategic inventory and supply chain planning.
Despite a dip in quarterly sales amid tariff-related uncertainty, Shelton-based cutting-and-safety products supplier Acme United Corp. on Wednesday reported record net income for the second quarter of 2025, buoyed by strategic inventory and supply chain planning.
The company — which sells cutting, measuring, sharpening and first‑aid products for a variety of markets including schools, homes, offices and industrial clients — posted net income of $4.8 million, or $1.16 per diluted share, for the quarter ended June 30, up from $4.5 million, or $1.09 per share, in the same period last year.
Net sales fell 3% to $54 million from $55.4 million in the second quarter of 2024, driven largely by tariff uncertainty that disrupted customer purchasing behavior, the company said.
“There was extreme uncertainty with tariffs during the period, resulting in customer indecisiveness, but we were ready,” Chairman and CEO Walter C. Johnsen said in a statement. “When the tariffs were announced, many of our customers delayed or canceled orders because imported product costs exceeded selling prices.”
Johnsen said Acme was able to cushion the impact by placing advance factory orders in late 2024 and drawing from surplus inventory to meet demand and support customers with alternative products.
Johnsen noted the company has been diversifying its supply chain for years to hedge against trade disruptions.
“We have been actively diversifying Acme United’s supply base for many years,” he said. “Our last 10 acquisitions have been manufacturers in the U.S. and Canada. Our sourcing team has an active presence in China, India, Malaysia, Thailand, Vietnam, and Egypt. We are currently shifting production within our supply base to provide the best total cost and service to our customers. We believe we are well positioned for the future despite continuing tariff uncertainty.”
Sales in the U.S. segment declined 5% for the quarter, mainly due to back-to-school order cancellations tied to steep tariffs in April and May, the company said. European sales fell 3% in U.S. dollars, while Canadian sales surged 28%, fueled by strong demand for first-aid products.
This story was written with the help of ChatGPT.
