6309 Monarch Park Place, Suite 203
Niwot, CO 80503, USA
Phone (303) 443-5060
Toll free (888) 742-5060
The OEM segment reported net sales increases of 1.8% to $16.9 million for the second quarter and 2.6% to $33.5 million for the first six months of 2003. Net sales for the MRO segment were $80.2 million for the second quarter and $159.7 million for the six-month period ended Jun. 30, 2003, decreases of 3.7% and 2.0% , respectively.
In the second quarter, the company incurred a special pre-tax charge of $1.2 million ($.8 million after tax) related to the severance and retirement of certain management personnel. Including that special charge, net income for the second quarter of 2003 decreased 11.8% to $4.1 million compared to $4.7 million in the same period last year. For the six-month period ended Jun. 30, 2003, net income was $7.9 million compared to $8.5 million in the first six months of 2002, a decrease of 7.4%. The principal reason for the decrease was the mentioned special charge. Net income per share was $.44 for the quarter and $.83 for the six-month period, decreases of 10.2% and 5.7%, respectively when compared to the same periods last year.
Robert J. Washlow, chairman of the board and CEO, commented, ''Economic conditions in many markets we serve in the U.S. are challenging at this time. Nonetheless, we continue to make every effort to support our sales force and many within our domestic sales organizations have improved their productivity this year. We are also continuing with our efforts to reduce operating costs as a percentage of sales, and as noted from the improvement in our 'pre-special charge' net income, we are beginning to realize the benefit from this effort. We believe these efforts, along with related initiatives, will provide a strong foundation for growth in sales and net income.''