Congoleum Profits Plunge From a Year Ago

Mercerville, NJ, Aug. 13, 2008--Congoleum Corporation said second quarter net income was $212,000, compared with net income of $835,000 a year ago.

Sales for the three months ended June 30 were $47.2 million, down from $57.5 million last year, a decrease of 18 percent.

Net income per share was $.03, down from $.10.

"Sales in the second quarter failed to show their normal seasonal improvement over the first quarter and were sharply below year earlier levels," said Chairman Roger S. Marcus,

"Market conditions in our three key end markets, manufactured housing, new construction, and residential remodeling, are abysmal, the weakest I've ever seen. Making matters worse, we have not seen any of the softening of raw material prices that has accompanied downturns in the past. Instead, costs for raw materials and energy have continued to rise rapidly."

Marcus said the company has cut costs, including a 17 percent reduction in its salaried workforce.

Second quarter expenses included a $750,000 severance charge related to the layoffs.

"While I do not anticipate the economic climate improving any time soon, I am somewhat more optimistic about our own results, particularly as we enter 2009. We have made securing additional business a high priority over the past year, and I am pleased to report that these efforts have resulted in new programs that we expect will result in $12 million to $18 million of incremental sales next year."