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

 

April 30, 2009

PRESS RELEASE

Detrex Corporation Reports Results for the First Quarter of 2009

Southfield, Michigan – April 30, 2009 - 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 results for the first quarter of 2009.

First quarter net sales decreased to $17.9M from $24.6M in the comparable period last year. The company incurred a net loss of $321,284, or $0.20 per fully diluted share, compared to net income in the same period last year of $502,927, or $0.31 per fully diluted share.

Compared to 2008, the year-over-year decrease in sales of 27% is due to similar volume declines at both Harvel Plastics, Inc. and The Elco Corporation. The downturn in both businesses is due to a steep falloff in demand as the effects of a weak industrial economy were compounded by significant inventory destocking.

The net loss of $321,284 in the first quarter of 2008 is primarily due to the low volume and sales. While material costs declined roughly in proportion with volume, other costs and expenses declined significantly but not to the extent of the sales reduction. Actions were taken to reduce payroll and to control production and non-production outlays. Further actions have been taken in April to curtail certain employee benefits and payroll expense.

Cash flow was carefully managed throughout the quarter and will continue to be a high management priority. The favorable cash flow for the period is in part attributable to the sale of the Company’s former Parts Cleaning Technologies’ (PCT) Dallas facility for $450,000.

Commenting on the Company’s results for the first quarter of 2009, President and CEO Tom Mark said, “The current economic climate is extremely difficult with weak industrial activity and significant inventory destocking continuing from the first quarter. While the economic situation is largely due to factors that are beyond our control, rest assured that management is doing everything possible to improve performance and maintain liquidity. Our objective is to preserve, to the greatest extent possible, capacity and capability in the organization by taking actions that will enable us to make it through this downturn and to be in a position to respond when the market returns.”

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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