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

 

November 8, 2010

PRESS RELEASE

Detrex Corporation Reports Profit for the Third Quarter of 2010

Southfield, Michigan – November 8, 2010 - Detrex Corporation (DTRX.PK), a diversified manufacturer of PVC and CPVC pipe, duct and shapes and specialty chemicals including additives for industrial petroleum products and high purity hydrochloric acid, today announced third quarter net income of $865,852, or $0.54 per fully diluted share, compared to a net loss of $21,653, or $0.01 per fully diluted share, in the third quarter of last year. Year-to-date net income was $1,980,090, or $1.24 per fully diluted share, compared to a net loss of $642,922, or $0.40 per fully diluted share for the same period of 2009. Net income in 2010 includes a third quarter after-tax charge of $248,000 to discontinued operations for environmental costs in the discontinued Parts Cleaning operations and an anticipated workman’s compensation settlement.

Third quarter net sales increased 35.2% to $26.3M from $19.4M in the comparable period last year. The primary contributor to this improvement was strong performance at The Elco Corporation. Elco’s sales increased significantly due to improvements in nearly all product lines combined with high volume from a temporary tolling arrangement and pull ahead sales related to a scheduled maintenance outage. Sales at Harvel Plastics, Inc. also improved as the company focused on strengthening its position in the struggling construction markets. On a year-to-date basis, 2010 sales were $71.7M compared to $56.2M in the first nine months of the prior year. Sales increased at both Elco and Harvel as both companies made inroads in their respective markets. Earnings increased significantly in the third quarter over the prior year primarily as the result of higher volume and favorable sales mix at Elco. Year-to-date earnings also improved compared to the prior year at both companies with the largest increase generated at Elco.

Commenting on the Company’s results, President and CEO Tom Mark said, “The strong performance in the third quarter is largely the result of significant growth at Elco due to improved market conditions, success with specialty products and a tolling arrangement that is scheduled to end this year. Harvel continued to generate solid performance in spite of the depressed construction markets. While we expect sales and earnings to moderate from the third to the fourth quarter due to seasonal factors and a tapering of the tolling arrangement, we expect strong sales and earnings for the year. It is our intention to continue to invest in the businesses and to address our legacy liabilities.”

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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