Pacer Technology Reports Mixed Results For 2nd Quarter and 6 Months of 1995.
Sales for the quarter ended Dec. 31, 1994, were $4,561,086 vs. $4,606,218 for the comparable period a year ago. Net income for the quarter was a loss of $56,778 compared with last year's profit of $87,240.
Six-months sales amounted to $10,313,388, up 21 percent from last year's $8,556,185. Net income declined to $142,943, compared with $267,863 a year ago.
The company's traditional domestic sales leaders, notably its hobby, cosmetics and industrial product lines, were down slightly while international sales and the recently acquired Super Glue line continued to show sales gains. The company emphasized that its customer base remains strong.
Pacer President/CEO James T. Munn said "second-quarter revenues were negatively impacted by reduced demand at the retail level and actions taken by our customers to balance inventories in response to uncertainty among consumers.
"Also contributing to the decline in earnings," said Munn, "were the upward march of interest rates, which began to slow the economy in late 1994; higher raw material costs; and a rise in the company's working capital requirements due to higher inventory levels to meet our customers' shipping demands." The company has reduced marketing and administrative expenses while initiating selected price increases on certain products.
Pacer introduced its PRO SEAL(R) line of automotive aftermarket products in Europe during 1994 and expects continuing growth in this market area.
"Maintaining our revenue and earnings growth during the third quarter will continue to be difficult due to underlying weakness in the economy and increased interest rates," Munn stated. "In response, we will continue our strategy of new product offerings, increasing distribution outlets and continuing aggressive sales and marketing efforts worldwide with the goal of achieving greater revenue and earnings for the entire year," he said.
Pacer Technology is a manufacturer and worldwide marketer of advanced technology adhesives, sealants and threadlockers for the automotive, industrial and aerospace markets and related products for the consumer, cosmetics and hobby markets. -0-
Pacer Technology Financial Highlights
Three Months Ended Dec. 31, 1994 1993
Net sales $ 4,561,086 $ 4,606,218 Net income (56,778) 87,240 Per share 0 1 cent Weighted average common shares and common share equivalents -- Primary 16,301,253 15,631,924
Six Months Ended Dec. 31, 1994 1993
Net sales $10,313,388 $ 8,556,185 Net income 142,943 267,863 Per share 1 cent 2 cents Weighted average common shares and common share equivalents -- Primary 16,301,253 15,631,924
CONTACT: Pacer Technology, Rancho Cucamonga
James T. Munn or Roberto J. Cavazos Jr., 909/987-0550
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|Date:||Feb 10, 1995|
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