Plymouth Rubber Company, Inc., Reports Financial Results
30 June 1998
Plymouth Rubber Company, Inc., Reports Financial Results for the Second Quarter of Fiscal 1998
CANTON, Mass., June 30 -- Plymouth Rubber Company, Inc.
(Amex: PLR.A, PLR.B) today announced financial results for the second quarter
of fiscal 1998.
Net sales for the second quarter of fiscal 1998 increased 4.5% to
$18,510,000 from $17,706,000 a year ago. The sales increase was primarily
contributed by the Brite-Line Technologies subsidiary, where sales increased
over 100% from last year, as well as a moderate increase at the Plymouth
Europa subsidiary. Net income for the second quarter of fiscal 1998 was
$1,080,000, or $.49 per share, compared to $170,000, or $.08 per share a year
ago, resulting in a 535% increase. The higher profit was a result of
improvements in production costs at Plymouth's Canton operations, and of the
higher sales at Brite-Line and Plymouth Europa.
For the first half of fiscal 1998, sales were $32,974,000, level with
sales of $32,990,000 in the first half of last year. Net income for the first
half was up 111% at $657,000, or $.30 per share, as compared to $311,000, or
$.14 per share in the first half of last year.
Maurice J. Hamilburg, Plymouth's President, commented, "We are pleased
that all three business units contributed to the improved earnings for the
second quarter. We are particularly encouraged by the volume and profit
growth at Brite-Line, and also by cost and margin improvements in our tapes
business here in Canton. Although the major equipment in our $10 million
capacity expansion program is now operational, it had only a minor effect on
the second quarter results, which were still limited by production
constraints.
We are, of course, concerned about the potential impact on our third
quarter of the current strike at General Motors, our largest customer, but we
remain optimistic about our long-term prospects for earnings growth as the new
production capacity allows us to meet future demand and to increase sales."
Plymouth Rubber Company, Inc. manufactures and distributes vinyl and
rubber products, including automotive tapes, insulating tapes, and other
industrial tapes and films. The Company's products are used by the electrical
supply industry, electric utilities, and automotive and other original
equipment manufacturers.
This release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
and Exchange Act of 1934. The Company's actual results could differ
materially from those set forth in the forward-looking statements.
Plymouth Rubber Company Reports Operating Results
for Fiscal 1998 Second Quarter and First Half
(in Thousands Except Per Share Amounts)
(Unaudited)
Second Quarter Ended Six Months Ended
May 29, May 30, May 29, May 30,
1998 1997 1998 1997
Net Sales $18,510 $17,706 $32,974 $32,990
Net Income $1,080 $170 $657 $311
Per Share Data:
Basic Earnings Per Share:
Net Income $.52 $.08 $.32 $.15
Weighted average
number of shares
outstanding 2,074,050 2,030,513 2,064,404 2,021,469
Diluted Earnings Per Share:
Net Income $.49 $.08 $.30 $.14
Weighted average
number of shares
outstanding 2,205,860 2,175,475 2,182,836 2,188,390