June

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

 

November 8, 2013

PRESS RELEASE

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.

 

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