6309 Monarch Park Place, Suite 203
Niwot, CO 80503, USA
Phone (303) 443-5060
Toll free (888) 742-5060
Zep Inc., Atlanta, GA, a producer, marketer, and service provider of cleaning and maintenance solutions, reported sales of $123 million for the third quarter ended May 31, 2009, down 15.3% from the prior year. Profit improved to $5.4 million from $168,000 for third quarter of fiscal year 2008; third quarter 2008's results included restructuring and special charges of $5.9 million.
For this first nine months, sales were $366.7 million, down 13.1%. Profit declined 65.1% to $2.9 million.
Weak customer demand across a number of end-markets and high raw material costs negatively impacted the overall results.
"However, our restructuring and cost reduction measures have gained additional traction, and our third quarter gross profit margin exceeded that of the second quarter by 2.7 percentage points," said John K. Morgan, president and CEO. "Absent significant further deterioration in current economic conditions, we expect profitability in all four quarters of our next fiscal year and believe we are well positioned for an eventual economic rebound."
Zep has consolidated five branches in the last 90 days and expects to consolidate another four branches before the conclusion of the calendar year.