Third Quarter, Fiscal 1999

Net sales for the third quarter increased to $262,413,000 compared to $229,407,000 for the third quarter of fiscal 1998. Net income for the quarter was $5,817,000 compared to $6,753,000 for the third quarter of last year. Both diluted and basic earnings per share for the quarter were $.19 compared to $.22 for the third quarter of last year.

The growth in sales came in large part from the building products division, reflecting strong performance from an acquisition completed in the second quarter, augmented by sales increases in the specialty plastic films and electronic information and communication systems divisions. Operating income in the third quarter was slightly higher than last year. Building products had increased earnings in the quarter attributable to sales growth and to certain steps recently undertaken including plant consolidations, the sale of an unprofitable commercial product line and the successful implementation of additional production capacity. It is anticipated that building products’ market will remain strong and result in a positive operating trend. The results in specialty plastic films continue to be disappointing. Earnings of a business acquired in the fourth quarter of 1998 were offset by the effects of competitive pricing, raw material cost increases and by delays in the anticipated start up of new programs in the infant diaper market. The third quarter reflected continuation of solid growth in sales and earnings from the electronics division. A strong backlog and diversity of programs should enable this division to continue to post favorable results.

Net sales for the first nine months of fiscal 1999 were $757,330,000 compared to $658,297,000 for the first nine months of fiscal 1998. Operating results for the first nine months of fiscal 1999 reflect a restructuring charge, incurred in the second quarter, aggregating $3,500,000 or $.07 per share for consolidation of certain of the company’s building products operations. Net income for the first nine months of fiscal 1999 was $10,508,000 compared to $18,386,000 for the first nine months of last year. Diluted earnings per share for the nine months ended June 30, 1999 were $.34 compared to $.59 for the first nine months of last year. Basic earnings per share for the first nine months of fiscal 1999 were $.35 compared to $.60 for the first nine months of last year.

We look forward to reporting continued positive developments.

Harvey R. Blau
Chairman of the Board

Robert Balemian
President

Operating Highlights
(Unaudited)
  For the Three Months Ended
June 30,		   For the Nine Months Ended
June 30,
  1999  1998    1999  1998 
Net sales $262,413,000  $229,407,000    $757,330,000  $658,297,000 
           
Operating income $  11,303,000  $  11,017,000    $  21,816,000  (1) $  31,397,000 
Interest expense and other, net     (2,069,000)        (297,000)       (5,136,000)     (2,212,000)
Income  before income taxes 9,234,000  10,720,000    16,680,000  29,185,000 
Provision  for income taxes     (3,417,000)     (3,967,000)       (6,172,000)   (10,799,000)
Net income $    5,817,000  $    6,753,000    $  10,508,000  $  18,386,000 
Net income per share of
common stock:		          
  Basic                $.19                $.22                   $.35  (1)               $.60 
  Diluted                $.19                $.22                   $.34  (1)               $.59 
Weighted average number of
shares used in the calculation of
per share results:		            
  Basic     30,372,000      30,625,000        30,381,000     30,533,000 
  Diluted     30,445,000      31,318,000        30,569,000     31,413,000 

(1) Includes a pre-tax restructuring charge of $3,500,000 or $.07 per share incurred in the quarter ended March 31, 1999.


Consolidated Balance Sheets
June 30,
1999
(Unaudited)		 September 30,
1998
ASSETS
Cash and cash equivalents $  16,437,000 $  19,326,000
Other current assets   302,136,000   287,300,000
  Total current assets 318,573,000 306,626,000
Property, plant and equipment, net 131,189,000 132,214,000
Other assets     69,800,000     49,098,000
$519,562,000 $487,938,000
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities $135,454,000 $138,144,000
Long-term debt 130,952,000 107,458,000
Minority interest and other 11,395,000 12,247,000
Shareholders’ equity   241,761,000   230,089,000
$519,562,000 $487,938,000



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