November 8, 2013
Detrex Corporation Reports Earnings for the Third Quarter of
2013 and announces a 4th Quarter Dividend
Southfield, Michigan – November 8, 2013 - Detrex Corporation (DTRX.PK),
today announced 2013 third quarter net income of $796,768, or $0.46
per fully diluted share, compared to net income of $363,235, or
$0.21 per fully diluted share in the third quarter of 2012.
Year-to-date 2013 net income was $2,749,920, or $1.59 per fully
diluted share, compared to net income of $18,218,730, or $10.58 per
fully diluted share for the year-to-date period in 2012. The 2012
net income includes net income from discontinued operations related
to the sale of the Company’s Harvel Plastics, Inc. subsidiary. The
third quarter 2012 loss from discontinued operations was $85,191 and
the year-to-date gain was $16,459,353. The Company also announced
that it will pay a $0.25 quarterly dividend on December 12, 2013 to
shareholders of record as of November 29, 2013.
Third quarter sales of $10.1 million were approximately the same as
in the comparable period last year. This sales level is
approximately $1 million below the sales in the first and second
quarters of this year due to market conditions that softened near
the end of the second quarter. Year-to-date sales in 2013 are $32.5
million compared to $33.5 million in the same period last year. The
year-over-year shortfall is primarily the result of sales to a major
customer that began to decline after the first quarter of 2012.
Sales to new and existing customers have partially offset this
reduction in sales.
The 2013 pre-tax income from continuing operations of $0.9 million
for the quarter and $3.9 million year-to-date are higher than the
corresponding $0.7 million and $2.8 million of 2012 primarily due to
the absence of provisions for environmental expense. In 2012 the
provisions for environmental expense were $0.6 million for the third
quarter and $1.8 million for the year-to-date. 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. The majority of the liabilities were transferred
to a third party in a June 2013 transaction. The savings from
eliminating the environmental provision have been partially offset
by increases in manufacturing costs, depreciation and amortization,
interest expense, as well as non-recurrence of a legal expense
recovery in 2012.
“Elco is performing well in the market for industrial lubricant
additives in spite of soft conditions. We are continuing to invest
in product development and organizational capabilities that will
provide new opportunities”, said Detrex President and CEO, Tom Mark.
“Management and the Board continue to investigate opportunities to
enhance shareholder value.”
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.