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

 

April 30, 2013

PRESS RELEASE

Detrex Corporation Reports Earnings for the First Quarter of 2013 and Announces a 2nd Quarter Dividend

Southfield, Michigan – April 30, 2013 - Detrex Corporation (DTRX.PK), today announced 2013 first quarter net income from continuing operations of $1,038,653, or $0.60 per fully diluted share, compared to 2012 net income from continuing operations of $726,254, or $0.42 per fully diluted share. The 2012 net income of $17,671,979, or $10.34 per fully diluted share included income from discontinued operations of $16,945,725, or $9.92 per fully diluted share, from the gain on the sale of the Harvel Plastics, Inc. subsidiary. The Company also announced that it will pay a second quarter dividend of $0.25 per share on June 27, 2013 to shareholders of record on June 17, 2013.

First quarter 2013 revenues were $11.2 million, which were $1.1 million lower than the prior year’s first quarter revenues of $12.3 million. The revenue reduction was the result of lower sales at the Company’s sole subsidiary, The Elco Corporation. The 2013 earnings improvement in continuing operations over the prior year’s first quarter was primarily due to the absence of a $600,000 provision for environmental expense. The Company increased the reserve for environmental liabilities to $17.0 million in the fourth quarter of 2012 as the result of an in-depth evaluation of these liabilities.

Elco’s performance in the first quarter of 2013 represents the third consecutive quarter of improved operating earnings; however, the first quarter 2013 sales and earnings were below the levels in the first quarter of the prior year primarily as a result of reduced sales to a major customer. Sales to new and existing customers have partially offset this reduction in sales. Various products are currently being trialed by a number of customers and continued solid performance is expected.

Detrex President and CEO Tom Mark said, “We are pleased with Elco’s solid operating performance under challenging market conditions. The team is pursuing a number of growth opportunities where our products show promise, as well as expanding our business in China. The absence of an environmental charge in our first quarter results clearly shows the positive impact of the work done in 2012 to define our environmental liabilities. We are continuing to work on the environmental liability transfer transaction and will keep you informed of our progress.”


About Detrex Corporation
Founded in 1925, Detrex Corporation through its subsidiary The Elco Corporation is a leading manufacturer of high performance specialty chemicals including additives for industrial petroleum products and high purity hydrochloric acid.

Forward Looking Statements
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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