Cleaning & Restoration Breaking News

Royal Appliance Announces Third Quarter Results and Litigation Settlement

October 23, 2002
/ Print / Reprints /
ShareMore
/ Text Size+
CLEVELAND, Oct. 18 /PRNewswire-FirstCall/ -- Royal Appliance Mfg. Co. maker of Dirt Devil® floor care products, today announced net sales of $91.7 million for the third quarter ended September 30, 2002, down 18 percent over the $111.5 million for the comparable period in 2001. Net sales for the first nine months of 2002 were $272.3 million, down 7 percent over the first nine months of 2001 net sales of $294.1 million.

The Company reported net income of $3.1 million or $.23 per share for the quarter ended September 30, 2002, compared to net income of $4.1 million or $.29 per share for the comparable period in 2001. Net income for the nine month period ended September 30, 2002, was $1.9 million or $.14 per share, compared to net income of $5.6 million or $.39 per share in the comparable period for 2001.

The decrease in net sales for the three and nine months ended September 30, 2002 was primarily attributable to lower selling prices. Net sales for the third quarter of 2001 included initial shipments of the Platinum Force line of products into retail stores last year.

The Company also announced today that the Hoover Company and Royal Appliance Mfg. Co. have reached an agreed settlement of all patent-related litigation that has been pending between the companies in the federal court for the Northern District of Ohio. Hoover has granted rights to Royal with regard to its existing carpet extractor patents. Royal has granted rights to Hoover with regard to its existing bagless upright vacuum cleaner patents. The settlement, which results in positive cash payments to Royal, puts an end to litigation that has been pending in the courts since early 2000.

Michael J. Merriman, Chief Executive Officer, stated, "Our business continues to be driven by our strategy of introducing innovative and proprietary consumer products to the mass market. Our quarterly results are affected by the timing of new product launches into retail. Last year we had the launch of the Platinum Force line and its related advertising campaign in the third quarter. This fourth quarter we will introduce to the market our fourth family of bagless upright vacuums. We remain cautious about the fourth quarter because of the continued emphasis on lower price point products and retailers' concern about the holiday season due to the current economic climate."

Did you enjoy this article? Click here to subscribe to i Cleaning Specialist Magazine.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

The 2014 Experience Conference and Exhibition

A look in photos at the 2014 Experience Conference and Exhibition, which was held from April 24-26 at the Embassy Suites Convention Center and Spa in Frisco, Texas.

Podcasts

Don't underestimate the value of a good Internet marketing plan. In fact, if you do this right, it's not uncommon to see ROI along the lines of 30-to-1. Here's a look at 27 free and low-cost tips that you can begin implementing within your cleaning business today to drive more business.
More Podcasts

ICS Cleaning Specialist Magazine

CoverImage

2014 August

The August issue of ICS features stories on carpet mold, good training, marketing for cleaners, traffic lane cleaning, and cool products.

Table Of Contents Subscribe

Social Media

Social media is a good way to regularly keep in touch and interact with current clients and reach potential ones. What social mediums do you use in your cleaning/restoration business?
View Results Poll Archive

THE ICS STORE

Get Paid! book cover
Get Paid! (ebook)
Over 30 authors – over 40 articles…from attorneys, contractors, consultants, instructors and others, both inside and outside the restoration industry. R & R, C & R and Cleanfax, opened their archives and gave us the best they had, other chapters were created just for the “Get Paid!” book and its readers. And every one of them has ideas for how to get paid what you are owed.

More Products

ICS DIRECTORY AND BUYING GUIDE

Director_Buyer.jpgThe premier resource and reference guide for the cleaning and restoration industries.

Click here to view

TRUCKMOUNT EQUIPMENT AND ACCESSORIES GUIDE

Truckmount.jpgEquipment listings and specifications from the leading industry manufacturers.

Click here to view

STAY CONNECTED

facebook_40.png twitter_40px.png youtube_40px.pngcrc logo