Permatex Forecasts Record Revenues in 2000
14 November 2000
Permatex Forecasts Record Revenues in 2000; New Products, Acquisitions and Training Clinics Drive Growth
HARTFORD, Conn., Nov. 13 Permatex, Inc., a leading
developer, marketer and manufacturer of automotive repair and consumer
products, announced today that the company is on track to achieve record
revenues in 2000.
The privately held company did not release specific figures, but Permatex
Chairman and Chief Executive Officer Dean M. Willard commented, "Permatex
investors have been very pleased with our sales performance to date and are
excited about prospects for 2001."
Permatex President Pat Formica attributes the company's success to a
combination of factors, including new-product introductions and line
extensions, an acquisition and training clinics.
"The Permatex story is even more remarkable compared with the lackluster
performance of the automotive aftermarket industry as a whole," he said.
Although the company has substantially outperformed the industry this year,
Mr. Formica added that Permatex also has instituted stringent cost controls.
"The challenges facing the automotive aftermarket will continue in 2001, and
we are preparing Permatex for all eventualities," he said. "We are very
pleased with the cost savings generated by measures taken to date."
New Products and Line Extensions Provide Foundation for Growth.
Permatex introduced more than 30 new products during the first nine months
of the year, which have been well received by customers and end-users. The
company added an entire line of functional fluids, including Permatex(R) brand
Fuel Injector & Carburetor Cleaner, Complete Fuel System Cleaner, Gas
Treatment, Super Heavy Duty Brake Fluid, and OEM Power Steering Fluid.
In addition, the Permatex adhesive lines were substantially enhanced with
the addition of new products such as the DR. BOND(R) Super Glue line and
premium Permatex(R) Ultra Bond(R) adhesives in liquid and gel formulas. The
company also introduced premium repair kits for professionals and do-it-
yourselfers.
Permatex(R) Professional Repair Systems contain everything required for
making professional-quality repairs to windshields, radiators, fuel tanks,
plastic tanks and rearview mirrors.
Another new product, Permatex(R) Bulb/Lamp & Electrical Connector
Dielectric Grease, ensures trouble-free operation and replacement while
protecting electrical connections from moisture, salt, dirt and corrosion.
Permatex has several new products in the works for 2001, including a line
of epoxy adhesives, additional professional repair kits, a line of synthetic
lubricants and a new Fast Orange(R) skin care line.
"When Permatex was launched in August 1999, we went after highly talented
marketing and R&D people. We also built a product research and development
facility in Solon, Ohio. Those investments are now paying off in the form of
superb new products and line extensions," Formica said.
Acquisitions and Partnerships Provide New Avenues for Growth.
The company's first acquisition was completed in April of 2000 when it
acquired No Touch North America, an innovative and high-value-added producer
of tire and wheel care products. As a result, Permatex now has a 10 percent
share of the $100 million North American tire and wheel care market. No
Touch's patented formula for its original one-step tire care product
revolutionized the category in 1991.
"Permatex has a large and well-established sales force, tremendous
distribution strength, and excellent relationships with our customers. By
adding a high quality appearance line like No Touch(R) to our portfolio of
leading automotive brands, we increase our ability to serve their needs,"
Formica said. The company is already shipping No Touch(R) products from its
warehouse in Solon, Ohio and other Permatex locations.
In September, Permatex acquired worldwide marketing rights to Slik-Pak(R),
an innovative and patented product used by truck drivers to lubricate the
connecting device between the trailer and the tractor, called the "fifth
wheel." Permatex sees excellent growth prospects for the brand and will be
applying significant resources to it.
Training Clinics Win New Customers For Mainstay Products.
Permatex's mainstay products have enjoyed solid growth this year due in
large part to the company's innovative training clinic program. More than
30,000 automotive technicians and vocational technical students have
participated in these hour-long Permatex product seminars since this program
was launched in June 1999. The company has consistently experienced sales
increases of featured Right Stuff(R) Gasket Maker, Permatex(R) Threadlockers,
and Fast Orange(R) Hand Cleaner products in regions with heavy training clinic
activity.
The clinics, which are primarily conducted by Permatex's sales force,
demonstrate to automotive technicians how Permatex products can save them
time, decrease maintenance costs and increase repair reliability. Demand for
the clinics has been so strong that Permatex plans to expand the program in
2001 and will include more products in the seminars.
International Expansion Opens New Markets For Permatex.
Permatex has established a highly successful Canadian operation over the
past 15 months. The company also acquired Loctite's former Mexican hardware
business in August 2000 and nearly doubled existing sales in that market. The
Canadian and Mexican operations recently were relocated to new facilities in
Toronto and Mexico City to improve customer service.
The company, which currently holds rights for the Permatex business in
North America, is currently in negotiations to acquire the global rights to
the Permatex(R) trademark and brands.
Permatex was purchased from Loctite Corporation in August 1999, led by the
business' management team. "Virtually every employee of Permatex is a
shareholder and is totally committed to a philosophy of providing the best
products, best value and best service to our customers," Mr. Willard
commented.