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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. |