DETREX CORPORATION - (OTCQX:DTRX)
Contact: Thomas E. Mark
Phone: (216) 749-2605, x-113
November 9, 2016
Detrex Corporation Reports Sales and Earnings for the Third Quarter of 2016,
Announces the Relocation of Corporate Headquarters,
And a Fourth Quarter Dividend of $0.25 per share
Cleveland, Ohio - November 9, 2016 - Detrex Corporation (OTCQX:DTRX), today
announced 2016 third quarter net income of $361,483, or $0.21 per fully diluted share,
and year-to-date net income of $903,361, or $0.53 per fully diluted share. This compares
to 2015 third quarter net income of $513,981, or $0.30 per fully diluted share, and 2015
year-to-date net income of $1,888,525, or $1.09 per fully diluted share. The Company
also announced that it will pay a fourth quarter dividend of $0.25 per share on
December 22, 2016 to shareholders of record as of December 8, 2016.
The Company relocated its corporate headquarters from Southfield, Michigan to Elco's
offices in Cleveland, Ohio. This is anticipated to improve the Company's long term
performance with cost savings from elimination of positions and improved efficiencies.
Moving and personnel related costs of $422,000 were charged to administrative expense
in the third quarter, and year to date these expenses total $701,600.
In conjunction with the Corporate relocation several personnel changes have been made.
Bob Lunoe, Elco's VP of Finance, has also been appointed to Vice President and
Treasurer of Detrex. John Hensien of Clark Hill has been named Corporate Secretary.
Bob Currie, after 23 years with Detrex, has retired from the Company as Vice President,
General Counsel, and Secretary-Treasurer. We thank him and wish him well.
Third quarter revenues of $9.8 million were essentially unchanged from the prior year,
and were an improvement over prior quarters. Domestic demand in the metalworking and
industrial markets continues to be below year ago levels, while international was
relatively strong in spite of the impact of the strong dollar. Year-to-date revenues of
$28.1 million were also below last year's level of $30.6 million due to soft conditions in
the first two quarters.
"We are pleased with Elco's steady performance improvement in the challenging
industrial lubricants market. The recent move to consolidate Corporate administrative
functions into Elco's infrastructure will streamline overall Company costs for the future."
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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