Congoleum Corporation reports drop in third quarter finances
MERCERVILLE, N.J. -- Congoleum Corporation (Nasdaq:CGM) reported its financial results for the third quarter were down 5.1 percent for the three months ended Sept. 30, 2001 at $57.9 million, compared with sales of $61 million reported in the third quarter of 2000.
The company also reported its net income for the quarter was $1.2 million, which compares to $1.7 million in the third quarter of 2000. Sales for the first nine months of 2001 also declined 3.8 percent to $166.6 million, compared with sales of $173.1 million in the first nine months of 2000. The net loss for the first nine months of 2001 was $2.4 million, which is a comparable performance to a loss of $2.4 million for the first nine months of 2000.
"Although sales and profitability for the third quarter were below last year's level, they represent a considerable improvement over the first two quarters of 2001," said board chairman Roger S. Marcus. "I view this performance as very positive in light of the extremely difficult economic conditions in both the conventional and manufactured housing markets."
According to Marcus, "We believe this progress is the result of several steps we have taken, including but not limited to the following:
1. Major cost reductions instituted in the first quarter have positioned the company with a significantly lower break-even point.
2. The recent launch of a ceramic-like product, Durastone.
3. Lowe's recent appointment of Congoleum as a supplier.
According to Marcus, "These accomplishments, as well as other programs that are under development, should provide further momentum to both top and bottom line performance in the future. While the events of Sept. 11 had some impact on our September business, October sales returned to the prior positive trend."
Congoleum Corporation (www.congoleum.com) is one of the nation's leading manufacturers of sheet and tile flooring. Based in Mercerville, N.J., Congoleum's resilient flooring products are designed and manufactured in Trenton, NJ; Marcus Hook, PA; and Cedarhurst, MD.