DETREX CORPORATION - (DTRX:PK) Contact: Thomas E. Mark
Phone: (248) 358-5800 FAX: (248) 799-7192

 

April 26, 2011

PRESS RELEASE

Detrex Corporation Reports Profit for First Quarter of 2011

Southfield, Michigan – April 26, 2011 - Detrex Corporation (DTRX.PK), a diversified manufacturer of PVC and CPVC pipe, duct and shapes and specialty chemicals including additives for industrial petroleum products and high purity hydrochloric acid, today announced first quarter net income of $1,269,144, or $0.79 per fully diluted share, compared to net income of $345,209, or $0.22 per fully diluted share, in the first quarter of last year.

First quarter 2011 revenues were $29.3 million which represents a 38% increase compared to prior year’s first quarter revenues of $21.2 million. This increase was the result of a 74.9% increase in sales at The Elco Corporation and a 22.1% increase at Harvel Plastics, Inc. Year-over-year sales volumes were higher at both companies as the result of the improving economy, higher export volumes and greater market penetration with specialty products. Both companies generated significantly higher earnings as the result of volume related margin improvement. A portion of this improvement was offset by a $450,000 pre-tax environmental charge that reflects the company’s current practice of replenishing the environmental reserve by an amount at least equal to spending in the current year. No such charge was made in the first quarter of 2010.

Cash management continued to be a priority as the significant volume growth resulted in greater working capital needs; bank debt increased by approximately $2.5 million in the first quarter. The company believes it has adequate availability as a result of its expected cash flow combined with its capacity under the loan agreement to meet cash requirements for working capital, capital expenditures, pension funding and environmental spending.

Commenting on the Company’s results for the first quarter of 2011, President and CEO Tom Mark said, “The dramatic improvement in operating results is gratifying because it validates the company’s philosophy of being highly responsive to customer needs, and we expect this performance to continue. The dramatic improvement in results also shows how the domestic and export markets, and our position in them, have improved. We are experiencing significant increases in raw material costs, but we believe that we will be able to adjust selling prices proportionately.”

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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