Congoleum Sees Losses Rise in Fourth Quarter

Mercerville, NJ, March 30, 2009--Resilient manufacturer Congoleum Corp. said fourth quarter sales  were $31.7 million, compared with sales of $43.8 million reported in the fourth quarter of 2007, a decrease of 27.6%.

The net loss for the quarter was $6.4 million or $0.77 per share compared with a net loss of $2.4 million or $0.29 per share in the fourth quarter of 2007.

Sales for the year ended Dec. 31 were $172.6 million, compared with sales of $204.3 million in 2007.

The net loss for the year was $14.6 million, or $1.77 per share, versus a net loss of $700,000 or $.08 per share, in 2007.

The net loss for 2008 includes an $11.5 million charge taken during the third quarter of 2008 to increase reserves for estimated legal and related expenses in connection with the reorganization proceedings.

"The current economic downturn and its impact on our industry are unprecedented in recent decades, and our operating results for 2008 suffered accordingly," said Chairman Roger S. Marcus.

Congoleum sells into three primary end markets, including the residential construction market, manufactured housing, which includes recreational vehicles and motor homes, and residential retail.