Mercerville, NJ, August 4--Congoleum Corp. reported net income for the second quarter ended June 30, 2004 of $1.4 million versus a net loss of $2.0 million in the second quarter of 2003.
Net income per share for the quarter ended June 30, 2004 was $0.16, compared with a net loss per share of $0.24 in the second quarter of 2003.
Sales for the three months ended June 30, 2004 were $63.0 million, compared with sales of $55.0 million reported in the second quarter of 2003, an increase of 14.5%.
Net income for the six months ended June 30, 2004 was $0.9 million, or $0.11 per share, versus a net loss of $4.6 million, or $0.55 per share, in the first six months of 2003. Sales for the six months ended June 30, 2004 were $115.0 million, compared with sales of $108.6 million reported in the first six months of 2003, an increase of 5.9%.
Roger S. Marcus, Chairman of the Board, commented "We are very pleased with the sales and profitability improvements achieved during the second quarter. Our sales growth came from increased shipments to the manufactured housing industry and the introduction of our new Xclusive sheet product, as well as inventory increases by our largest distributor following decreases in the first quarter. Even more encouraging was our bottom line performance, which reflects the benefit of the cost reduction steps we took last year as well as the improvement in sales. We are particularly pleased to have achieved margin improvements despite significant increases in our raw material costs, which more than offset the benefit of our price increase last year."
Mr. Marcus continued, "Although these raw material increases will continue to pressure our margins for the balance of 2004, we are optimistic about the overall outlook for our operating results this year. Our new Xclusive product has been very well received at retail and shipments are running well ahead of expectations. Sales of this new product, together with the improved level of sales to the manufactured housing industry, should benefit our top line for the remainder of the year and help mitigate the impact of the higher raw material costs as well as the costs of new product development and introduction. We also remain optimistic about our goal of completing the Chapter 11 reorganization in 2004. Achieving that, together with our excellent product offering and leaner cost structure, would put us in an exciting position as we enter 2005."
