Congoleum Reports 3Q Profit
Sales for the quarter were $53.6 million, compared with sales of $57.5 million reported in the third quarter of 2006, a decrease of 6.7%.
Net income for the first nine months of 2007 was $1.7 million, or $.20 per share, versus net income of $0.4 million, or $.05 per share, in the first nine months of 2006. Sales for the nine month period were $160.4 million, compared with sales of $173.4 million in the first nine months of 2006.
“Third quarter shipments were well below year earlier levels, although a price increase we instituted in the second quarter of this year helped mitigate the lower unit volumes,” said Roger S. Marcus, chairman of the board. “Net results for the quarter, however, improved considerably due to better gross margins coupled with operating expense reductions."
The company said gross margins improved by over four points from the third quarter of last year due to price increases, better plant performance, and product mix.
"Business conditions in the third quarter remained extremely challenging in all our end markets, with new housing, housing resales, retail remodel, and manufactured housing all extremely weak,” Marcus said. “At the same time, global demand factors continue to maintain upward pressure on our raw material costs."
On December 31, 2003, Congoleum filed for Chapter 11 bankruptcy protection, as a means to resolve claims related to the use of asbestos decades ago.