June

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

 

August 9, 2016

PRESS RELEASE

Detrex Corporation Reports Sales and Earnings for the Second Quarter of 2016 and Announces a Third Quarter Dividend of $0.25 per share

Southfield, Michigan – August 9, 2016 - Detrex Corporation (OTCQX:DTRX), today announced 2016 second quarter net income of $307,561, or $0.18 per fully diluted share, and year-to-date net income of $541,878, or $0.32 per fully diluted share. This compares to 2015 second quarter net income of $661,594, or $0.38 per fully diluted share, and 2015 year-to-date net income of $1,374,545, or $0.80 per fully diluted share. The Company also announced that it will pay a third quarter dividend of $0.25 per share on September 22, 2016 to shareholders of record as of September 8, 2016.

Second quarter revenues of $9.4 million increased from the prior two quarters and were below the $10.0 million second quarter revenues a year ago. Weak demand in the metalworking and industrial markets were the primary contributors to this decline. This decline was primarily in domestic markets and was partially offset by gains made in
exports. Year-to-date revenues of $18.3 million were also below last year’s level of $20.9 million as soft conditions persisted. The second quarter and year-to-date earnings were impacted by lower sales volume and exceptional pre-tax corporate administrative expense of $387,000 and $547,000, respectively.

“Elco is performing well in the challenging industrial lubricants markets, and we are pleased to see improved penetration in the export markets which are key to our future growth.” said President and CEO Tom Mark. “We remain in the process of evaluating strategic opportunities to generate shareholder value 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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