WELLESLEY HILLS, Mass.--(BUSINESS WIRE)--American Biltrite Inc. (AMEX:ABL - News) reported its results for the third quarter of 2008 today. Net sales for the three months ended September 30, 2008 were $97.4 million, down 9.4% from $107.4 million in the third quarter of 2007. Net loss for the three months ended September 30, 2008 was $10.4 million or $3.01 per share (basic and diluted) compared with net income of $675 thousand or $0.20 per share (basic and diluted) in the third quarter of 2007. Included in the net loss for the three and nine months ended September 30, 2008 is an $11.5 million charge at Congoleum for asbestos related reorganization costs. For the nine months ended September 30, 2008, American Biltrite’s net sales were $294.3 million compared with net sales of $323.0 million for the same period in 2007. American Biltrite’s net loss for the nine months ended September 30, 2008 was $9.5 million, or $2.75 per share (basic and diluted), compared with net income of $1.1 million, or $0.31 per share (basic and diluted), for the same period last year.American Biltrite’s consolidated results include the results of its 55% owned subsidiary Congoleum Corporation, which is in Chapter 11 bankruptcy reorganization proceedings. American Biltrite anticipates its ownership interest in Congoleum will be eliminated upon the conclusion of such proceedings. Accordingly, American Biltrite believes its financial results excluding Congoleum to be a more meaningful presentation to investors. Excluding the results of Congoleum, American Biltrite’s net sales for the three months ended September 30, 2008 were $51.3 million, down 4.7% from $53.8 million for the three months ended September 30, 2007, and its net loss for the three months ended September 30, 2008 was $258 thousand compared to a net loss of $504 thousand for the three months ended September 30, 2007. For the nine months ended September 30, 2008, excluding the results of Congoleum, American Biltrite’s net loss was $1.2 million on net sales of $153.4 million compared with a net loss of $603 thousand on sales of $162.5 million for the nine months ended September 30, 2007. Congoleum comprises the flooring products segment in American Biltrite’s reported results.
Roger S. Marcus, Chairman of the Board, commented “Business conditions were extremely difficult in the third quarter, with raw material and energy costs continuing to escalate despite weak demand in housing and other key end markets we serve. Operating results at Congoleum and Tape suffered accordingly. The general retail climate was also poor, as reflected in K&M’s lower sales in the third quarter versus year earlier levels. Fortunately, K&M’s cost reduction efforts enabled it to be profitable in the third quarter even with the lower revenues. Despite the challenging environment, the Canadian division increased sales and income versus the third quarter of 2007 on improved sales of industrial products.”
“While we do not anticipate that market conditions will improve any time soon, raw material prices have recently declined, which may provide some relief from the elevated costs we faced in the first nine months of 2008. Our plans also call for additional expense reductions and other steps as may be needed in response to economic conditions. At the same time, we are working to position ourselves to take advantage of competitive opportunities which may arise from these conditions.”
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