Spartech misses fiscal 3rd-quarter expectations, says economic recovery is moving slowlyBy AP
Wednesday, September 8, 2010
Spartech posts fiscal 3Q loss, misses expectations
ST. LOUIS — Plastic sheet and packaging maker Spartech Corp. reported a net loss for its fiscal third quarter on Wednesday and said that despite higher revenue, the overall market recover is slower than expected.
For May through July, Spartech said its net loss was $3.9 million, or 12 cents per share. In the same period last year, the company reported net income of $1.5 million, or 5 cents per share.
Excluding one-time items, the company said its net loss was a narrower 5 cents per share.
Analysts surveyed by Thomson Reuters were looking for stronger results, an estimated net income of 27 cents per share.
Revenue increased 17 percent to $269.6 million from $230.5 million a year earlier and slightly higher than the $268.2 million Wall Street expected.
The company said it sold 7 percent more goods in terms of volume in the quarter, but revenue also rose because Spartech raised its prices to pass higher materials costs on to customers.
In a statement, Spartech said, “Although the company experienced improved sales volumes in many markets, the overall market recovery is slower than expected and markets such as domestic construction and recreation and leisure remain weak.”
Expenses and costs also jumped 24 percent to $272.3 million. The company also said its profits were hurt by an increase of lower-margin products and a delay completing plant consolidation at its Donora, Pa., facility.
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Tags: North America, St. Louis, United States