8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported August 24, 2006 (August 24, 2006)
LaBARGE, INC.
(Exact name of registrant as specified in its charter)
DELAWARE	001-05761	73-0574586
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)
9900 Clayton Road, St. Louis, Missouri 63124
(Address of principal executive offices)		(Zip Code)
(314) 997-0800
Registrant's telephone number, including area code
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing Obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
( ) Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
( ) Soliciting material pursuant to Rule 425 under the Securities Act (17 CFT 240.14a-12)
( ) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17CFT 240.14d-2(b))
( ) Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17CFR 240.13e-4(c))

FORM 8-K
Item 2.02    Results of Operations and Financial Condition
	On August 24, 2006, LaBarge, Inc. issued a press release announcing its financial results for the fiscal 2006 fourth quarter and year-end. A copy of the press release is attached hereto and hereby incorporated by reference. The information in this Form 8-K shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), or otherwise subject to the liabilities of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01    Financial Statements and Exhibits
(c)    Exhibits
99.1	Press release for LaBarge, Inc. for the fiscal 2006 fourth quarter and year ended July 2, 2006, and forward-looking statements relating to fiscal 2007, as presented in a press release of August 24, 2006.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

LaBarge, Inc.

(Registrant)

Date: August 24, 2006	By:  /s/Donald H. Nonnenkamp
		Donald H. Nonnenkamp Vice President, Chief Financial Officer and Secretary

Exhibit Index

Index Number	Description
99.1	Press release for LaBarge, Inc. for the fiscal 2006 fourth quarter and year ended July 2, 2006, and forward-looking statements relating to fiscal 2007, as presented in a press release of August 24, 2006.

EX-99.A CHARTER

NEWS UPDATE

Contact:

Colleen Clements

LaBarge, Inc.
314-997-0800, ext. 409

colleen.clements@labarge.com

LaBARGE, INC. REPORTS FINANCIAL RESULTS FOR
FISCAL 2006 FOURTH QUARTER AND YEAR

Fourth-Quarter Sales Increase 22 Percent
Bookings of New Business Remain Strong
Backlog Reaches Record High

ST. LOUIS, August 24, 2006 . . . . . LaBarge, Inc. (AMEX: LB) today reported its financial results for the fiscal 2006 fourth quarter and year ended July 2, 2006.

Fiscal 2006 fourth-quarter net sales rose 22 percent to $55,030,000 from $45,105,000 in the fiscal 2005 fourth quarter. Net earnings in the fiscal 2006 fourth quarter were $2,710,000, or $.17 per diluted share, down 5 percent from $2,839,000, or $.18 per diluted share, in the fourth quarter of fiscal 2005.

For the year ended July 2, 2006, net sales grew 4 percent to $190,089,000, compared with $182,294,000 in the 2005 fiscal year. Net earnings in fiscal 2006 were $9,708,000, or $.60 per diluted share, down 11 percent from $10,870,000, or $.68 per diluted share, in fiscal 2005.

The tax rate recorded for both the fourth quarter and year ended July 2, 2006 was 39.2 percent, compared with 39.7 percent and 35.6 percent, respectively, in the comparable fiscal 2005 periods. The lower full-year tax rate in fiscal 2005 was from tax credits and an adjustment to the Company's provision for state income taxes that had a positive impact on earnings of $487,000, or $.03 per diluted share.

The impact of expensing stock options in accordance with the Statement of Financial Accounting Standards No. 123(R), "Share-Based Payment," was less than $.01 per diluted share in the fiscal 2006 fourth quarter and $.02 per diluted share for the year ended July 2, 2006.

The gross margin in fiscal 2006 was 21.6 percent, versus 22.6 percent in fiscal 2005; both are within the Company's typical range of 20.0 percent to 23.0 percent. Selling and administrative expense as a percentage of sales declined slightly to 12.1 percent in fiscal 2006 versus 12.6 percent in fiscal 2005; actual dollar comparisons were essentially flat in the two periods. Interest expense was $2,083,000 in fiscal 2006, versus $1,747,000 one year earlier, reflecting higher interest rates and higher borrowings.

As a result of higher short-term borrowings, total debt increased to $41,668,000 at July 2, 2006, compared with $27,916,000 at July 3, 2005. The increased borrowings were largely the result of higher levels of inventory and accounts receivable, and lower cash advances from customers. Stockholders' equity was up 20 percent to $64,834,000 at July 2, 2006, versus $53,830,000 at July 3, 2005.

Craig LaBarge, chief executive officer and president, commented, "As projected, difficulties in bringing certain large, new contracts into full production slowed LaBarge's fiscal 2006 sales growth and negatively affected earnings. However, we are confident that we have employed the necessary actions to position the Company for the next level of growth. We won significant new pieces of business, established a strong pipeline of future opportunities, and implemented initiatives to improve productivity and operational effectiveness. We expect the benefits of these efforts will be evident as our 2007 fiscal year unfolds.

"In reviewing fiscal 2006 versus the previous year, the largest contributor to revenues was shipments on a variety of defense programs, which accounted for 40 percent of fiscal 2006 net sales, compared with 45 percent in the previous year. Actual sales dollars from the defense market sector declined
7 percent in fiscal 2006 compared with the same period a year earlier.

"Shipments to natural resources customers represented 21 percent of fiscal 2006 net sales versus
19 percent in fiscal 2005. Actual revenue dollars from this market sector were up 11 percent in fiscal 2006 versus a year earlier, the result of significant increases in shipments to oil-and-gas customers during 2006.

"Shipments to industrial customers were 18 percent of fiscal 2006 revenues, compared with 19 percent in fiscal 2005. Actual sales dollars from the industrial market sector were down 3 percent in fiscal 2006 versus a year earlier, due in part to a decline in shipments to semiconductor customers.

"Revenues from the government systems market sector represented 10 percent of fiscal 2006 sales, versus 4 percent in the year-ago period. Actual dollar sales from this market were up 145 percent in fiscal 2006, the result of increased shipments related to a postal automation program.

"The balance of fiscal 2006 full-year revenues was attributable to customers in other market sectors, including:

• Commercial aerospace - 5 percent in fiscal 2006, versus 6 percent in 2005, and
• Medical - 2 percent in both fiscal 2006 and fiscal 2005.

"Bookings of new and additional business were strong during fiscal 2006, particularly in the commercial aerospace, government systems and natural resources market sectors," said Mr. LaBarge. "Backlog of unshipped orders at the end of the fiscal year reached another record at $183,869,000, up 12 percent from last fiscal year-end."

Outlook and Commentary

Mr. LaBarge concluded, "Based on the continued strength of current backlog and the pipeline of new business opportunities in the markets we serve, we believe the Company is well-positioned to achieve favorable financial comparisons in fiscal 2007. With regard to the fiscal 2007 first quarter specifically, we expect sales to grow approximately 25 percent and earnings to be up modestly from the comparable period a year earlier."

Today's Conference Call Webcast

Today, at 11 a.m. Eastern time, LaBarge will host a live audio webcast of its discussion with the investment community regarding financial results for the Company's fiscal 2006 fourth quarter and year. The webcast can be accessed on the Internet through http://viavid.net/dce.aspx?sid=00003382 and the investor relations calendar area of http://www.labarge.com. Following the live discussion, a replay of the webcast will be available at the same locations on the Internet.

About LaBarge, Inc.

LaBarge, Inc. is a broad-based provider of electronics to technology-driven companies in diverse industrial markets. The Company provides its customers with sophisticated electronic products through contract design and manufacturing services. Headquartered in St. Louis, LaBarge has operations in Arkansas, Missouri, Oklahoma, Pennsylvania and Texas. The Company's Web site address is http://www.labarge.com .

(Financial tables follow)

Statements contained in this release relating to LaBarge, Inc. that are not historical facts are forward-looking statements within the meaning of the federal securities laws. Matters subject to forward-looking statements are subject to known and unknown risks and uncertainties, including economic, competitive and other factors that may cause LaBarge or its industry's actual results, levels of activity, performance and achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Important factors that could cause LaBarge's actual results to differ materially from those projected in, or inferred by, forward-looking statements are (but are not necessarily limited to) the following: the impact of increasing competition or deterioration of economic conditions in LaBarge's markets; cutbacks in defense spending by the U.S. Government; loss of one or more large customers; LaBarge's ability to replace completed and expired contracts on a timely basis; LaBarge's ability to integrate recently acquired businesses; the outcome of litigation LaBarge may be party to; increases in the cost of raw materials, labor and other resources necessary to operate LaBarge's business; the availability, amount, type and cost of financing for LaBarge and any changes to that financing; and other factors summarized in our reports filed from time to time with the Securities and Exchange Commission. Given these uncertainties, undue reliance should not be placed on the forward-looking statements. Unless otherwise required by law, LaBarge disclaims any obligation to update any forward-looking statements or to publicly announce any revisions thereto to reflect future events or developments.

LaBarge, Inc.

Consolidated Statements of Income (Unaudited)

(amounts in thousands, except per-share amounts)

			Three Months Ended													Twelve Months Ended
			July 2,							July 3,							July 2,						July 3,
			2006							2005							2006						2005
Net sales		$						55,030	$				45,105		$					190,089		$				182,294
Costs and expenses:
	Cost of sales						43,795						34,704						149,099						141,180
	Selling and administrative expense			6,068								5,337						23,037						22,979
	Interest expense					676						402						2,083						1,747
	Other income, net					35						(47		)				(94			)			(477			)
Earnings from continuing operations  before income taxes						4,456						4,709						15,964						16,865
Income tax expense						1,746						1,870						6,256						5,995
Net earnings					$			2,710			$		2,839		$					9,708		$				10,870
Basic net earnings per common share:
Basic net earnings					$			0.18			$		0.19		$					0.64		$				0.72
Average common shares outstanding						15,203						15,048						15,156						15,013
Diluted net earnings per share:
Diluted net earnings						$		0.17			$		0.18		$					0.60		$				0.68
Average diluted common   shares outstanding						16,163						16,069						16,102						15,883

LaBarge, Inc.
Consolidated Balance Sheets
(amounts in thousands, except share amounts)

				July 2, 2006					July 3, 2005
ASSETS
Current assets:
	Cash and cash equivalents			$		947		$			820
	Accounts and other receivables, net				29,759				23,371
	Inventories				53,819				41,342
	Prepaid expenses				1,743				974
	Deferred tax assets, net				1,395				1,387
		Total current assets			87,663					67,894
Property, plant and equipment, net					20,453				18,849
Intangible assets, net					2,743				3,388
Goodwill, net					24,292				24,292
Other assets, net					5,199				5,514
			Total assets	$		140,350		$			119,937
;
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
	Short-term borrowings			$		19,475		$			1,650
	Current maturities of long-term debt					5,791					4,661
	Trade accounts payable				15,714				10,026
	Accrued employee compensation				7,783				9,511
	Other accrued liabilities				1,961				2,609
	Cash advances				5,395				11,445
		Total current liabilities			56,119					39,902
Long-term advances from customers for purchase of materials					2,760				3,854
Deferred tax liabilities, net					235				746
Long-term debt					16,402				21,605
;
Stockholders' equity:
	Common stock, $.01 par value. Authorized 40,000,000 shares; 15,773,253 issued at July 2, 2006 and July 3, 2005, including shares in treasury				158				158
	Additional paid-in capital				15,185				13,722
	Retained earnings				52,431				42,723
	Less cost of common stock in treasury, shares of 606,262 at July 2, 2006 and 723,345 at July 3, 2005			(2,940			)	(2,773				)
;
		Total stockholders' equity			64,834				53,830
;
		Total liabilities and stockholders' equity		$		140,350		$			119,937

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