CONTINENTAL MATERIALS' THIRD-QUARTER RESULTS IMPROVE DRAMATICALLY
CHICAGO, Nov. 4 /PRNewswire/ -- Continental Materials Corp. today reported a net income of $375,000 or 32 cents per share for its third quarter ended Sept. 27, compared with a loss of $329,000 or 28 cents per share a year ago.
Consolidated net sales of $17,972,000 were less than the $18,549,000 a year ago.
James G. Gidwitz, chairman, said operating results improved dramatically from the prior quarter and year-ago levels, despite sluggish sales.
Net sales for the nine months totaled $53,271,000, compared with $55,802,000 a year ago. The nine months' net income was $53,000 or 5 cents per share, compared to a loss of $1,229,000 or $1.05 per share for the prior-year period.
Phoenix Manufacturing, Inc. of Phoenix, Ariz., enjoyed a substantial improvement in total sales and operating margin, despite the sale of the salon hairdryer product line in June 1990. The salon hairdryer line accounted for $751,000 of sales in the prior-year period. Improved product quality, the result of a major renovation of its finishing system in the fourth quarter of 1990, contributed to the increased sales and earnings.
The margins of the company's two building materials subsidiaries, Transit Mix Concrete Co. and Castle Concrete Company of Colorado Springs, Colo., improved dramatically, as did their combined volumes. This was due to the contract to supply sand and rock for the runway extension at the Colorado Springs Airport and the improving local economy. The airport contract was completed during October 1991. Operating improvements and cost-savings measures also contributed heavily to their higher earnings.
Sales for the nine months ended Sept. 27, 1991, declined at both Williams Furnace Co. of Colton, Calif., and at Imeco, Inc. of Polo and Dixon, Ill. Weak activity in the markets served, as well as the overall sluggish national economy, were responsible for their reduced volume. Cost-saving measures taken in the administrative area of these companies cushioned the effects of the reduced volume.
The credit for income taxes for the nine months ended Sept. 27, 1991, includes the estimated effective rate for the year and a reversal of tax contingencies in the first quarter reflecting the settlement, in favor of the company, of state tax audits for the years 1979 through 1981.
CONTINENTAL MATERIALS CORP. SUMMARY OF SALES AND EARNINGS
Three Months Ended Nine Months Ended
9/27/91 9/28/90 9/27/91 9/28/90
Net Sales $17,972,000 $18,549,000 $53,271,000 $55,802,000
(loss) $ 532,000 $ (662,000) $(456,000) $(2,393,000)
Other income 37,000 43,000 234,000 411,000
income taxes 569,000 (619,000) (222,000) (1,982,000)
income taxes 194,000 (290,000) (275,000) (753,000)
(loss) $ 375,000 $ (329,000) $ 53,000 $(1,229,000)
(loss)per share $0.32 $(0.28) $0.05 $(1.05)
outstng. 1,174,000 1,174,000 1,174,000 1,174,000
/CONTACT: Keith E. Owens or John N. DeBoice, 708-291-1080, for Continental Materials/
(CUO) CO: Continental Materials Corp. ST: Illinois IN: CST SU: ERN KD -- NY053 -- 0748 11/04/91 12:43 EST