Lilly Industries has reported record third quarter sales, net income and net income per share for the quarter ended 31 August 2000. Sales of US$ 171.2 million were up 1% over the prior year“s third q…
Lilly Industries has reported record third quarter sales, net income and net income per share for the quarter ended 31 August 2000. Sales of US$ 171.2 million were up 1% over the prior year“s third quarter. Third quarter 2000 net income of US$ 9.1 million was up 5% from the same quarter a year ago. Diluted net income per share was US$ 0.38 compared to US$ 0.37 last year, despite average shares outstanding increasing 577,000. This was due primarily to accounting for stock option dilution resulting from the significant increase in the stock price during the quarter as a result of the June 26, 2000 announcement of the plan to merge with The Valspar Corporation. Sales for the nine months ended August 31, 2000 were US$ 508.6 million, up 4% over last year. Net income of US$ 22.7 million was down 5% over the same period a year ago. Diluted net income per share was also down 5%. Sales momentum softened during the third quarter. Most major product lines were relatively even with the year ago quarter. Gross profit and operating income margin trends improved from the first half due to price increases and cost containment initiatives. The quarter also benefited from a reduction in the effective tax rate to 40%, due to lower statutory rates in Canada and continued tax planning initiatives.