April 25, 2006PRESS RELEASE
Detrex Corporation Reports Profit for the First Quarter of 2006
Southfield, Michigan – April 25, 2006 - Detrex Corporation (DTRX.PK),
a diversified manufacturer of PVC and CPVC pipe, duct and shapes and
specialty chemicals including lubricant additives and high purity
hydrochloric acid, today announced net income for the first quarter
2006 of $1,048,776, or $0.66 per share, compared to net income of
$462,429, or $0.29 per share, in the same period last year. First
quarter 2006 net income includes $134,862 in after tax earnings from
a discontinued operations property sale.
First quarter 2006 revenues were $23,513,633, an increase of 10.0%
compared to 2005 first quarter revenues of $21,373,524. This sales
growth was driven by higher selling prices and volume at Harvel
Plastics, Inc. The higher selling prices are the result of a
combination of strong demand and increased PVC resin costs; the
improved market conditions have also contributed to higher margins
and earnings. Sales and earnings were lower for The Elco Corporation
compared to the prior year due to reduced sales of products for
certain specialty applications which had been strong in the first
quarter of last year. In addition, raw material costs were up
sharply and not all of the increases could be recovered in the
marketplace.
The momentum generated in the fourth quarter of 2005 carried into
the first quarter of 2006 and is continuing early in the second
quarter. Harvel’s sales and earnings have remained robust while
Elco’s performance is consistent with fourth quarter levels. There
can be no assurance that this performance will extend to future
quarters since a number of uncertainties exist about raw material
prices and demand.
Commenting on the Company’s results, President and CEO Tom Mark
said, “We are pleased with the strong operating performance in the
first quarter particularly at a time when we are funding a large
part of the discharge of legacy liabilities for pension and
environmental matters. In addition, we are funding high levels of
capital expenditures
for enhancing our business prospects. We recently completed the
installation of a large diameter extrusion line for Harvel’s
California facility. This line is now operational and is providing
our customers in the western part of the country with product. Our
challenge for the remainder of the year is to continue the high
level of operating performance while reducing our legacy
liabilities.”
Statements included in this press release that are not historical in
nature are “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995 (the “1995 Act”).
The words “believe,” “expect,” “anticipate,” “estimate,” “guidance,”
“target” and similar expressions identify forward-looking
statements. The Company cautions readers that forward-looking
statements are subject to certain risks and uncertainties, which
could cause actual results to differ materially from those projected
in the forward-looking statements. Certain risks and uncertainties
are identified from time to time in the Company’s reports. Some
factors that could cause results to differ materially from those
projected in the forward-looking statements include: market
conditions, environmental remediation costs, pension expense and
funding requirements, liquidation value of assets, and marketability
of real estate and the market value and future liquidity of Detrex
stock. The Company claims the protection of the safe harbor for
forward-looking statements contained in the 1995 Act.
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