FAR WEST INDUSTRIES ANNOUNCES EARNINGS
FAR WEST INDUSTRIES ANNOUNCES EARNINGS VERNON, British Columbia, Nov. 15 /PRNewswire/ -- Far West
Industries Inc. (Toronto, Vancouver: FWT) recorded a net income of $271,000 ($.06 per share) on sales of $3,587,000 for the third quarter of 1991. This compares with a net loss of $42,000 ($.01 per share) on sales of $4,714,000 for the same quarter last year. For the nine months ended Sept. 30, 1991, the company reported a net loss of $362,000 ($.08 per share) on sales of $7,003,000 compared with a net loss of $379,000 ($.09 per share) on sales of $8,114,000 for the corresponding period in the prior year. The financial statements have been restated for 1990 to record the actual average gross profit for the year before the loss on write down of inventory to estimated net realizable value.
The third quarter of the year was profitable for Far West despite the retail market conditions. Far West's working capital position has increased from $1,799,845 at December 31, 1990 to $3,132,275 at Sept. 30, 1991. Far West's operating loan has been reduced from $6,849,882 at Dec. 31, 1991 to $2,810,569 at Sept. 30, 1991. The details of this reduction are recorded on the statement of changes in financial position. Of particular note on this statement is the increase in long-term debt. Far West has converted $1,500,000 of its operating loan to long-term debt repayable over three years commencing April 1992. During 1991 the company took steps to reduce its overheads and improve production efficiencies. In addition Far West is very encouraged by the orders it is receiving for spring 1992 delivery. As indicated in earlier reports Far West was introducing its product to the European market and its first major shipment was delivered in August 1991. The company has been very successful in Italy and Spain and indications are that it will continue to experience growth in these countries. 1991 has been a very difficult year for the industry, however an improvement is now under way and Far West is in a position to respond aggressively to market demands. -0- 11/15/91 /CONTACT: R.G. Robinson, president of Far West Industries, 604-542-0237/ (FWT.) CO: Far West Industries Inc. ST: British Columbia IN: SU: ERN KJ -- LA016 -- 1688 11/15/91 16:05 EST
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|Date:||Nov 15, 1991|
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