Printer Friendly

CHEMDESIGN REPORTS OPERATING RESULTS FOR FOURTH QUARTER AND YEAR

 CHEMDESIGN REPORTS OPERATING RESULTS FOR FOURTH QUARTER AND YEAR
 FITCHBURG, Mass., Feb. 19 /PRNewswire/ -- ChemDesign Corporation (NASDAQ: CDCC) today reported sales for the fourth quarter ended Dec. 31, 1991, of $8.5 million, down 26.1 percent from $11.5 million for the same period in 1990, and down 8.6 percent from the $9.3 million reported for the third quarter of 1991.
 The company reported its first quartery loss since becoming publicly traded in 1989, reporting a net loss of $831,000, or a net loss of 9 cents per share, for the fourth quarter of 1991. For the same period in 1990, the company reported net income of $1.4 million, or 16 cents per share, and the company reported net income of $320,000, or 4 cents per share, for the third quarter of 1991.
 For the year ended Dec. 31, 1991, the company had sales of $40 million, down 4.8 percent from the record sales of $42 million reported in 1990. Net income for 1991 was $1.7 million, or 19 cents per share, down from the $5 million, or 57 cents per share, reported for 1990.
 Richard E.T. Brooks, chairman and chief executive officer of ChemDesign, commented: "As one can plainly see from the operating results that we reported today, we had a disappointing fourth quarter. Although we remained profitable for the year, our fourth quarter loss had a significant adverse effect on overall 1991 earnings. The manufacturing difficulties we experienced with the many new product start-ups undertaken in the fourth quarter were significant and persistent. These difficulties resulted in both reduced revenues and significantly lower plant productivity, which in turn resulted in substantially lower gross margins. These results, combined with increased costs of operating new wastewater purification plants for a full year at both of the company's manufacturing sites, a nearly 7 percent increase in annual operating expenses and the adverse effects of the deep recession, substantially narrowed the company's margins and squeezed its profitability."
 Brooks added, "Revenues in the reprographics group proved surprisingly strong, up nearly 10 percent for the year, and sales of advanced materials/polymers increased approximately 15 percent. Sales in the electronics group weakened significantly in the fourth quarter but were up almost 5 percent for the year. The biggest change occurred in the Ag chemical area, where sales fell over 35 percent for the year due primarily to the loss of contracted toll revenues in the second half of 1991 from the company's principal Ag customer. Ag revenues in the second half of 1991 were down approximately 80 percent form those reported for the same period in 1990. This resulted in substantial underutilized capacity in the third quarter and a number of difficult, new product start-ups in the fourth quarter. Other specialty chemical sales also dropped approximately 20 percent."
 Brooks concluded his comments by noting, "Although we have experienced some continuation of these problems into the first quarter with certain of the new product start-ups, we believe that those manufacturing difficulties are substantially behind us now, and we anticipate that the first quarter of 1992 will show improved operating results over the fourth quarter of 1991. Overall, we remain satisfied with our current outlook for 1992."
 CHEMDESIGN CORPORATION
 Financial Summary
 Fourth Quarter ended Dec. 31:
 1991 1990
 Sales $8,538,000 $11,521,000
 Net income $(831,000) $1,386,000
 Earnings (loss) per share (9 cents) 16 cents
 Average shares 8,862,000 8,874,000
 12 Months ended Dec. 31:
 1991 1990
 Sales $40,031,000 $42,036,000
 Net income $1,660,000 $5,000,000
 Earnings per share 19 cents 57 cents
 Average shares 8,891,000 8,921,000
 -0- 2/19/92
 /CONTACT: Richard E.T. Brooks, chairman and chief executive officer, or Steven E. Borgeson, general counsel, of ChemDesign, 508-345-9999/
 (CDCC) CO: ChemDesign Corporation ST: Massachusetts IN: CHM SU: ERN


SH-TM -- NE010 -- 0600 02/19/92 16:14 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 19, 1992
Words:660
Previous Article:TRAVEL ALL OVER DOWN UNDER WITH AIR NEW ZEALAND; NEW ZEALAND OR AUSTRALIA FOR $282; CORAL ROUTE ISLAND STOPS ONLY $200 ADDITIONAL
Next Article:BURKE NAMED TO HEAD KAYSER-ROTH DIRECT OPERATIONS
Topics:


Related Articles
BF GOODRICH REPORTS FOURTH QUARTER AND 1991 RESULTS
CONAGRA REPORTS RECORD FISCAL 1992 EARNINGS
CHEMDESIGN REPORTS SECOND QUARTER RESULTS
CHEMDESIGN REPORTS RECORD FOURTH QUARTER SALES AND IMPROVED FOURTH QUARTER EARNINGS
CHEMDESIGN'S RECOVERY CONTINUES THROUGH FIRST QUARTER OF 1993
CHEMDESIGN UPDATES OUTLOOK FOR SECOND QUARTER AND REMAINDER OF THE YEAR
CHEMDESIGN REPORTS SECOND QUARTER RESULTS
CHEMDESIGN ANNOUNCES RECORD QUARTERLY SALES IN THIRD QUARTER
CHEMDESIGN REPORTS FOURTH QUARTER AND YEAR END SALES AND EARNINGS
Cabot Announces Fourth Quarter Operating Results EPS $0.26 in Line With Street Expectations.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters