July 25, 2005PRESS RELEASE
Detrex Corporation Reports a Profit for the Second Quarter of 2005
Southfield, Michigan – July 25, 2005 - 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 of
$277,573 for the second quarter of 2005.
Second quarter net sales of $19,015,704 were 1% higher than the
comparable period last year and approximately 11% below first
quarter 2005 sales levels. On a year-to-date basis, sales were
$40,389,228, which is an increase of $3,794,678, or 10%, compared to
the prior year primarily as the result of the strong first quarter
of 2005.
In the second quarter, the Company generated pre-tax income from
continuing operations of $589,409 and net income from continuing
operations of $277,573, or $0.18 per share, compared to pre-tax
income from continuing operations of $481,988 and net income from
continuing operations of $260,678, or $0.16 per share, in the same
period last year.
On a year-to-date basis, pre-tax income from continuing operations
was $1,426,092, compared to first half pre-tax income of $824,142 in
the prior year. Year-to-date net income from continuing operations
was $740,003, or $0.47 per share.
The momentum generated in 2004 continued into the first five months
of the year with strong sales gains. Volume declined in June as
sales of certain specialty additives fell off and demand in the
plastic pipe markets softened. We are closely monitoring economic
activity levels in the industrial and commercial construction
markets since these markets are the primary sources of Harvel’s pipe
demand; in addition we are continuing to pursue various specialty
applications for Elco’s products.
The company initiated a significant capital investment project
during the quarter consisting of installation of a large diameter
pipe and duct extrusion line at Harvel’s California facility. Large
diameter pipe and duct are two of Harvel’s special capabilities, and
when the line is operational in early 2006 it will enable the
company to better serve the Western markets with these products.
Contamination was discovered during required follow-up sampling of
the Fields Brook environmental site, in Ashtabula, Ohio, which was
remediated three years ago. The source and extent is currently under
investigation and an estimate of the cost for additional clean up is
expected to be available by the end of the third quarter, at which
time it is likely that a charge to income will be taken to provide
for these costs.
Commenting on the Company’s results, President and CEO Tom Mark
said, “We are pleased with the continued operational performance and
with our ability to invest back in the businesses. In the coming
years, the continuation of this operational performance becomes
particularly important because we expect to enter into a period of
increased funding requirements for working down our liabilities for
pension and environmental matters.”
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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