1995 fiscal year sales and earnings at Lilly Industries, Inc. of the US were reported at below the previous year“s record high levels. Sales were US$ 328.3 million in 1995 as compared to US$ 331.3 mi…
1995 fiscal year sales and earnings at Lilly Industries, Inc. of the US were reported at below the previous year“s record high levels. Sales were US$ 328.3 million in 1995 as compared to US$ 331.3 million a year earlier. Net income was US$ 20.3 million, or US$ 0.88 per share, as compared to US$ 23.3 million, or US$ 1.00 per share, for 1994. Sales results for the fourth quarter ended 30 November 1995 were US$ 82.8 million, down from 1994“s fourth quarter sales of US$ 86.2 million. Net income of US$ 5.2 million and earnings per share of US$ 0.23 were also down from record 1994 fourth quarter results of US$ 7.4 million and US$ 0.32 respectively. Douglas W. Huemme, Lilly“s chairman, president and CEO, stated that, “Sales volumes were below last year“s levels for most of our major markets due to the lower manufacturing activity in the US. Lower profitability from reduced volume and rising raw material costs has been partially offset by expense reductions resulting from continuing cost control measures.” On 1 December 1995, Lilly announced completion of the purchase of PPG Industries“s mirror coatings business and the sale of its automotive refinish coatings business to PPG. Mr. Huemme noted that, “The mirror coatings business is complementary to Lilly“s established glass coatings business. Lilly“s industrial coatings business will be strengthened by this acquisition and the divestiture of Lilly“s automotive refinish coatings business.” The board of directors, at its January 1996 meeting, declared a quarterly cash dividend of 8 cents per share. At the same meeting the board also approved a Shareholder Rights Plan. Similar plans have been adopted by a large number of US public companies. In conclusion, Mr. Huemme pointed out how, in 1995, the company had made significant achievements in marketing, research and manufacturing which would position Lilly for future long-term growth and improved profitability.