24 June 1999: US manufacturers of industrial coatings and speciality chemical products, Lilly Industries, Inc. has reported all-time record quarterly levels for sales, operating income, net income and…
24 June 1999: US manufacturers of industrial coatings and speciality chemical products, Lilly Industries, Inc. has reported all-time record quarterly levels for sales, operating income, net income and diluted earnings per share. For the second quarter ended 31 May 1999, sales increased 8% to US$ 171.4 million, operating income was also up 8% at US$ 20.5 million and net income rose 10% to US$ 9.6 million. Diluted earnings per share for the second quarter increased 11% to US$ 0.41 compared to US$ 0.37 last year. Sales for the six months ended May 31, 1999 were up 5% at US$ 317.5 million compared to US$ 302.5 million for the same period last year. Net income for the first half of fiscal year 1999 increased by 10% to US$ 15.2 million, or US$ 0.65 per diluted share. The improved rate of sales growth in the second quarter and first half of the year was attributable to strong volume increases in wood coatings, metal coatings and composites. Sales growth in these markets was the result of a strong powder coating sales, increases in market share, strong domestic construction and transportation markets, and improved demand in the Asia/Pacific region. Sales of agricultural and construction equipment liquid metal coatings declined significantly from a year ago due to soft demand in these markets. Gross profit margin for the second quarter of 1999 improved to 39.2% of sales compared with 38.8% last year. This improvement results from supply chain management initiatives which have lowered raw material costs. Improved gross profit margin was offset by increased selling expenses associated with business building initiatives, international expansion, and growth of the fabric protection business. Lilly“s chairman and CEO, Douglas W. Huemme commented that “We are pleased with the recent gains in our rate of sales growth. Our internal growth strategies implemented during the past several years are paying off with an accelerating top line. We continue to invest in future expansion opportunities with a focus on powder coatings and additional infrastructure for all product lines in Europe, Mexico, Malaysia and China”. He added “At the same time, we are consolidating domestic manufacturing facilities to reduce costs and improve future operating margins. Our internal growth strategies implemented during the past several years are paying off with an accelerating top line”. Lilly“s board of directors declared a regular quarterly cash dividend of eight cents per common share. The dividend is expected to be payable on 1 October 1999 to shareholders of record on 10 September 1999.