PW Eagle 4th quarter sales down 36 percent.
Byline: Sherri Buri McDonald The Register-Guard
PW Eagle Inc. on Thursday reported weaker financials in the fourth quarter compared with the same quarter a year earlier. But profit and sales for all of 2006 were up from 2005.
The Eugene-based plastic pipe maker reported sales of $137 million for the quarter that ended Dec. 31, down 36 percent over the same period a year ago.
Profit for the quarter was $3.2 million, or 26 cents per share Cents per share
The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared with $39.1 million, or $3.56 per share, a year ago
"As anticipated, we experienced a decrease in our financial performance during the fourth quarter," chief executive Jerry Dukes said in a statement.
Demand fell more than it usually does in the fourth quarter because distributors were letting their inventories dwindle dwin·dle
v. dwin·dled, dwin·dling, dwin·dles
To become gradually less until little remains.
To cause to dwindle. See Synonyms at decrease. in anticipation of pipe prices bottoming out, the statement said.
PVC PVC: see polyvinyl chloride.
in full polyvinyl chloride
Synthetic resin, an organic polymer made by treating vinyl chloride monomers with a peroxide. resin prices also plunged during the quarter. PVC pipe prices fell faster than prices of its key ingredient, PVC resin, which resulted in lower gross margins, the statement said.
For the full year of 2006, PW Eagle reported profit of $60.7 million, or $5.02 per share, compared with $47 million, or $4.65 per share, for 2005. Sales in 2006 were $714.1 million, up three percent from $694.2 million in '05.
Last month, PW Eagle announced that J-M J-M Jelinski-Moranda (reliability model) Manufacturing Co., a New Jersey-based competitor, planned to buy the company in a deal valued at $400 million.
The transaction is expected to close this spring.
It is unclear how the deal might affect PW Eagle's 60-employee Glenwood production plant, or its 50-employee corporate headquarters near Valley River Center Valley River Center is a shopping mall located in Eugene, Oregon. As the largest shopping center south of Portland and north of San Francisco, this mall comprises over 130 local and national stores and restaurants. .
PW Eagle's stock, which trades under the symbol PWEI PWEI Pop Will Eat Itself (band) on the Nasdaq, closed at $33.10 per share on Thursday, down one cent from the previous day.