Five Star Products, Inc., New York, NY, distributor of paint sundry and hardware products in the Northeast and Middle-Atlantic states, reported revenue for the three months ended June 30, 2008, were down 12.5% to $31.4 million. Profit was $98,000, compared with profit of $567,000 in the prior-year period.
The distributor reported sales of $62.9 million for the first six months of 2008, a 4.4% decrease. The net loss was $609,000.
John Belknap, Five Star CEO, said: Challenging market conditions in our industry obviously have impacted Five Star's second quarter. Neither Five Star nor its customers are immune from negative economic factors affecting, in particular, the housing and home improvement industries."
As previously announced, National Patent Development Corp., which owns 82% of Five Star, and NPDV Acquisition Corp., a subsidiary of National Patent, have agreed to buy all outstanding shares of Five Star's common stock.
Five Star Products, Inc. distributes products to 3,000 independent retail dealers, which include paint stores, independent hardware stores, lumber yards, and do-it yourself centers. The Company distributes a range of private label products sold under the "Five Star" name.