Acme United Corp., a Shelton-based manufacturer of cutting, measuring and first-aid products, is consolidating operations, adding automation and opening a new Tennessee facility to reduce costs and improve efficiency.
Chief Executive Officer Walter C. Johnsen outlined the strategy in the company’s first-quarter earnings report released on Thursday, citing efforts to improve profitability through facility consolidation, automation and integration of a recent acquisition.
Acme sells branded cutting tools, first-aid supplies and related safety products to retailers, industrial customers and online buyers. The company recently acquired My Medic, which sells tactical, trauma and emergency response products directly to consumers.
In the first quarter, revenue rose 14% to $52.3 million from $46 million a year earlier, while net income fell 40% to $985,000, or 24 cents per diluted share, from $1.7 million, or 41 cents per share.
Acme said the profit decline was driven by higher cost of sales and operating expenses, including tariff-related costs, increased quality-control spending at one of its facilities and rising employee health care expenses.
Acme said it has moved into a new facility in Tennessee for its Spill Magic absorbent products business, consolidated one of its sites in Canada and is continuing to add automation across its operations.
The company also said it has increased inventory ahead of potential supply disruptions and cost increases tied to geopolitical tensions, including the conflict in Iran. Johnsen said Acme has placed about $10 million in additional orders for delivery in the second and third quarters and is evaluating further purchases.
