Detrex Corporation Reports Results for the Third Quarter 2003

Southfield, Michigan – November 24, 2003 - Detrex Corporation (OTCBB: DTRX), a diversified manufacturer of PVC and CPVC pipe, duct and shapes and specialty chemicals including lubricant additives and high purity hydrochloric acid, today announced operating results for the third quarter of 2003 and for the nine months ended September 30, 2003.

The Company incurred a net loss from continuing operations of $484,568 or $0.31 per share during the third quarter of 2003 compared to net income from continuing operations of $150,061, or $0.09 per share, for the third quarter of 2002. Revenues decreased $563,635 or 3.7% in the third quarter of 2003 compared to the same period in the prior year as market conditions were weak and erratic. For the first 9 months of 2003 revenues were $45,105,393, a decrease of $1,490,936, or 3.2%, compared to the same period in 2002. The Company reported a net loss from continuing operations of $639,910 or $0.40 per share in the first nine months of 2003 compared to net income from continuing operations of $705,346 or $0.45 per share for the same period in 2002. The net loss for the third quarter of 2003 including discontinued operations was $484,568 and the net loss for the first nine months of 2003 was $537,499.

The primary reason for the decrease in income in the third quarter of 2003 compared to the same period in 2002 was a decrease in gross margin of $920,310 due to product mix, pricing pressure and lower volume at both Harvel Plastics, Inc. (“Harvel”) and The Elco Corporation (“Elco”). Additionally, the expiration of a royalty agreement at the end of 2002, which contributed $276,536 to the third quarter 2002 results negatively impacted the year-to-year comparison. Increased pension expense of $202,000 in the third quarter compared to the same quarter in 2002 offset savings achieved through cost controls instituted at each of the subsidiaries as well as the corporate office.


For the 2003 year to date period, gross margins decreased by $1,418,160, compared to the same period in 2002, caused by a shift in product mix, pricing pressure, higher raw material costs, and a 3.2% reduction in sales. The royalty agreement which expired at the end of 2002, contributed $773,238 to the 2002 year to date results; pension expense increases of $782,000 for the first nine months of 2003, compared to the same period of 2002, more than offset reductions in other administrative expense, and resulted in a net increase in selling general and administrative expense of $98,191.

Harvel’s margins and operating results, have declined significantly in both the third quarter of 2003 and for the year to date, compared to the same periods of 2002, due to a shift in product mix towards less profitable product lines; compounding this mix shift were higher raw material costs for PVC pipe, and lower selling prices.

Elco’s profitability also declined significantly, for both the third quarter and the year to date 2003, compared to the same periods in 2002, primarily as the result of reduced demand for hydrochloric acid used in semi-conductor manufacturing and other industrial applications. A decline in the domestic lubricant additives business has been partially offset by growth in export sales.

President and CEO, Tom Mark said “While the economic conditions of the last several quarters have been very challenging, the situation became more difficult in the third quarter. Margins declined significantly as volume fell, selling prices declined, particularly in PVC pipe, and raw material prices increased. We are more optimistic about the future and expect our markets to improve by the beginning of next year as the general economic recovery extends into the manufacturing sector. In addition, Elco and Harvel are working on a number of product and market opportunities which should yield results in the coming year. We are also taking steps to capture the savings expected to result from eliminating costly reporting requirements, made possible by de registering our stock with the SEC.”

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.