Congoleum 2Q Earnings Up on Lower Sales
Sales for the quarter were off 2% to $57.5 million verses $58.7 million in the second quarter of 2006.
Net income for first six months of 2006 was $484,000, or $.06 per share, versus income of $837,000, or $.10 per share, in the same period of the prior year.
Sales for the six months were $106.9 million, compared with $116.0 million in the first six months of 2006..
Roger S. Marcus, chairman of the board said current economic conditions are hurting sales in the company's three major sectors, remodeling, new homes and manufactured homes.
"Given this very challenging economic environment, I consider it positive that we maintained second quarter revenues at close to year earlier levels, and believe it confirms we are holding our competitive position," Marcus said.
Marcus said that because of cost-cutting efforts, profits increased over a year ago despite lower sales volume, sharply higher costs for energy and medical benefits, and lower production volumes over which to spread fixed manufacturing costs.
In 2003, Congoleum filed for Chapter 11 bankruptcy resulting from asbestos claims.