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NEWBURYPORT , Mass . , Nov. 03 , 2021 ( GLOBE NEWSWIRE ) -- UFP Technologies , Inc. ( Nasdaq : UFPT ) , an innovative designer and custom manufacturer of components , subassemblies , products , and packaging primarily for the medical market , today reported net income of $ 3.8 million or $ 0.50 per diluted common share outstanding for its third quarter ended September 30 , 2021 , compared to net income of $ 3.0 million or $ 0.40 per diluted common share outstanding for the same quarter in 2020. Sales for the third quarter were $ 50.7 million compared to 2020 third quarter sales of $ 43.3 million . Net income for the nine- month period ended September 30 , 2021 was $ 12.7 million or $ 1.67 per diluted common share outstanding compared to $ 9.2 million or $ 1.22 per diluted common share outstanding for the same period in 2020. Sales for the nine - month period ended September 30 , 2021 were $ 150.0 million compared to sales of $ 134.2 million for the same period in 2020 . " I am pleased with our third quarter results , " said R. Jeffrey Bailly , Chairman & CEO . " Sales increased 17 % , operating income rose 36 % , and we saw double - digit growth in all markets except automotive , which remains down due to the microchip shortage . We also made substantial progress on our long - term strategic initiatives to expand our footprint and capabilities , and increase our value to customers . We continued to advance our expansion into Mexico , with facility build - out and equipment qualifications . We recently completed our acquisition of Contech Medical , the first step in a larger acquisition strategy to help us better serve our key medical customers and their growth plans . We are also pursuing additional acquisition candidates to provide low - cost manufacturing in locations where we currently ship millions of dollars of product . " " The team has done a good job navigating significant labor and supply chain issues , which have led to abnormally high overtime and $ 4 million in unfulfilled orders , " Bailly added . " We continue to experience limited supplies of raw materials , along with increased prices . However , after completing supplier negotiations and reviewing alternate sourcing options , we believe we can mitigate the impact of these issues with planned pass - through price increases to our customers . Still , in the near term gross margins will remain below our target levels . " " With our solid pipeline of new opportunities , strong balance sheet , and proven customer - focused strategy , we remain very excited and bullish about our future , " Bailly said . Financial Highlights for Q3 and YTD 2021 • Sales for the third quarter increased 17.1 % to $ 50.7 million , from $ 43.3 million in the same period of 2020. Year - to - date sales through September increased 11.7 % to $ 150.0 million , from $ 134.2 million in the same period of 2020 . • Third quarter sales to the medical market increased 20.5 % . Sales to the aerospace & defense and automotive markets increased 14.3 % and decreased 13.9 % , respectively . All other sales ( consumer , electronics , and industrial ) increased 23.9 % . • Year - to - date sales to the medical market increased 3.2 % . Sales to the aerospace & defense and automotive markets increased 36.9 % and 14.6 % , respectively . All other sales ( consumer , electronics , and industrial ) increased 35.4 % . • Gross profit as a percentage of sales ( " gross margin " ) decreased to 23.7 % for the third quarter , from 24.3 % in the same quarter of 2020. Gross margin for the nine - month period ended September 30 , 2021 increased to 25.4 % from 24.8 % in the same period of 2020 .