MINNEAPOLIS — The Minnesota Orchestra says it has ended the 2014 budget year with a smaller-than-expected deficit of $650,000.

The orchestra announced Tuesday that it reduced its deficit despite a 16-month lockout of union musicians that ended Feb. 1. It posted a $1.1 million deficit in 2013 and a $6 million deficit in 2012.

The orchestra’s shortened, six-month season began after musicians signed a three-year contract in January, accepting a 15 percent pay cut in the first contract year.

Board chairman Gordon Sprenger described the fiscal 2014 results as “a remarkable year of rebuilding.” The orchestra also won its first Grammy Award in 2014 and hired Kevin Smith as its new CEO. It reported receiving $10.5 million in contributions this year, up more than $2 million from 2013.