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An acknowledged global leader in polymer-based films and laminates, Clopay Plastics is known for delivering industry leading product innovations to our customers for use in infant diapers, adult incontinence, feminine hygiene, surgical, patient care, and industrial protective products.
From polymer films with patented surface textures to microporous breathable film and laminate structures, Clopay Plastics continues to move
forward in the development and commercialization of high-performance film and laminate structures that “breathe,” feel like cloth, stretch and recover, and biodegrade. We hold over 260 patents worldwide on our products and processes. In our newly constructed development and pilot production center
we work with new film and laminate systems from lab scale trials through
full production conditions to ensure superior performance products which may be quickly commercialized for our customers.
Our global customers expect a continuing stream of product innovations which combine breakthrough performance with cost-efficient economies. Clopay Plastic Products’ world-class track record of success is built on
delivering these products.
The company’s second quarter reflected solid performance resulting in higher sales and operating profit.
Net sales for the quarter were $277,330,000 compared to $267,308,000 for the second quarter of fiscal 2002. Income before income taxes increased to $11,236,000 from $10,445,000. Net income was $4,617,000 in the current quarter compared to $4,815,000 in the second quarter of 2002. Diluted and basic earnings per share were $.14 in the second quarter of both fiscal 2003 and 2002.
Garage doors’ profitability improved on the strength of manufacturing efficiencies and effective cost control, and was also positively impacted by the 2002 divestiture of Atlas, an unprofitable commercial operation. Net sales of the garage doors segment were lower compared to last year primarily due to the Atlas divestiture and inclement weather conditions in the segment’s markets.
Net sales of the specialty plastic films segment increased substantially compared to last year’s second quarter. The growth was principally due to higher unit volumes, the effect of a weaker U.S. dollar on translated foreign sales, the net sales of the Brazilian operation acquired in the latter half of fiscal 2002 and selling price adjustments to pass through raw material (resin) price increases to customers. Resin price increases have been substantial; raw material cost increases in the quarter exceeded related selling price adjustments by approximately $3.5 million. Also impacting the segment’s profitability in the quarter were costs associated with manufacturing facility expansion for existing and new products.
The electronic information and communication systems segment, Telephonics, reported lower sales primarily due to delays in anticipated awards of new orders which are expected to pick up as the year progresses. Earnings in this segment declined slightly compared to last year principally due to the sales decrease and increased research and development expenditures.
Net sales for the six months ended March 31, 2003 were $579,484,000 compared to $569,210,000 for the first six months of fiscal 2002. Pretax income for the six months rose to $32,317,000 compared to $30,739,000 last year. Income before the accounting change last year to adopt Statement of Financial Accounting Standards No. 142, “Goodwill and Other Intangible Assets,” was $15,537,000 for the first six months of 2003 compared to $15,397,000 last year.
During the quarter, cash generated from operations and existing cash balances funded treasury stock purchases of $3,100,000, further reductions in bank debt of $9,700,000 and capital expenditures of $12,300,000 primarily in connection with ongoing programs in the specialty plastic films segment.
With the arrival of milder weather conditions, and based upon anticipated continued positive impact from manufacturing efficiencies and cost controls, as well as less volatility in resin prices, we expect improved operating results in the second half of fiscal 2003.
Harvey R. Blau
Chairman of the Board
Robert Balemian
President |
