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North American Galvanizing & Coatings Reports Second Quarter 2004 Results Improved

Published on 2004-08-18. Author : SpecialChem

 

TULSA, Okla. -- North American Galvanizing & Coatings, Inc. (Amex: NGA - News) announced an increase in sales, net earnings and earnings per share for the second quarter of 2004. The Company's net sales for the three months ended June 30, 2004 rose 11.1%% to $9,333,000 compared to sales of $8,398,000 for the same quarter a year ago. Net earnings for the second quarter of 2004 were $106,000, or $.01 per share, fully diluted.

The Company's president and chief executive officer, Ronald J. Evans, noted a continuation of the modest increase in construction-related demand for galvanizing the Company experienced in the first quarter of 2004. Compared to 2003, the Company's increased earnings were primarily the result of improved gross profit from cost efficiencies and higher volume and lower interest expense, partially offset by additions to the reserve for collection of doubtful accounts. For the same period a year ago, the Company reported a net loss of $714,000, or $.11 per share, which included a $790,000 net loss related to the closing of an abandoned galvanizing plant. Mr. Evans expressed confidence that North American Galvanizing is positioned to take advantage of its streamlined cost structure as the economy improves, and emphasized that the Company will continue to address improving operating efficiencies.

For the first six months of 2004, the Company reported that sales increased 8.8% to $17,891,000 from sales of $16,438,000 for the same period of 2003. Net earnings for the first half of 2004 were $316,000, or $.04 per share fully diluted, compared to a prior year first-half loss of $1,044,000, or $.15 per share, which included a $831,000 net loss for discontinued operations.

The Company is a leading provider of hot dip galvanizing and coatings for corrosion protection of fabricated steel products through its North American Galvanizing Company subsidiary. The Company conducts its galvanizing and coatings business through a network of plants located in Denver, Hurst (Dallas/Fort Worth), Houston, Kansas City, Louisville, Nashville, St. Louis and the Tulsa area. Hot dip galvanizing provides metals corrosion protection for many product applications used in commercial, construction and industrial markets.

Cautionary Statement. Statements in this news release that are not strictly historical may be "forward looking" statements, which involve risks and uncertainties. Certain factors may cause actual results to differ materially from those contained in the forward looking statements, including economic and regulatory conditions, issues with suppliers, market demand, pricing and competitive factors, among others, which are set forth in the Company's Form 10-K and other filings with the Securities and Exchange Commission.

Source: North American Galvanizing & Coatings, Inc.


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