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LEICESTER, N.Y. – December 7, 2000 – CPAC,
Inc. (Nasdaq NNM: CPAK) today announced that it expects earnings for its fiscal
third quarter ending December 31, 2000 to be off compared with the same period
last year, due to an unexpected decline in sales in both segments of its
business. Third quarter earnings are expected to be in the range of $0.18 to
$0.21 per diluted share, down from $0.25 per diluted share for the same period
last year. CPAC consolidated net sales for the third quarter are expected to be
down approximately 10% compared to 1999. The Company expects to release final
third quarter numbers in early February 2001.
Management stated that sales in the Fuller
Brands segment are anticipated to be down approximately 12% due to an unexpected
decline in sales in both the CTG commercial cleaning division and the Stanley
Home Products direct selling business. CTG also received notice that a major
customer has chosen another supplier, due to a change in its corporate policy.
Imaging sales are expected to be down about 6%,
with the majority of the shortfall coming from the domestic imaging chemical
business. This market has been soft across the entire conventional film imaging
industry throughout 2000.
Thomas N. Hendrickson, Chief Executive Officer
for CPAC, Inc., said that, "Although disappointed in this quarter's
performance, I continue to believe our divisional marketing strategies will
reverse the negative sales trend in early 2001. However, it is likely that
fourth quarter results will also be below last year."
CPAC, Inc. is an international manufacturer and
marketer of industrial and household cleaning products and related accessories,
and personal care products for the cleaning and personal care industry, as well
as prepackaged chemical formulations, supplies, and equipment systems for the
imaging industry. The company operates in two business segments: Cleaning and
Personal Care (Fuller Brands) and Imaging. The Fuller Brands segment includes
The Fuller Brush Company (commercial and consumer), Stanley Home Products, and
Cleaning Technologies Group. CPAC's Imaging segment serves the global Imaging
market and includes three domestic and four international chemical manufacturing
operations. CPAC, Inc. shares trade on the Nasdaq National Market System under
the ticker symbol "CPAK''. More information is available on the Company's
web site (http://www.cpac-fuller.com).
Except for the historical matters contained
herein, statements in this press release are forward-looking and are made
pursuant to the safe harbor provisions of the Securities Litigation Reform Act
of 1995. Investors are cautioned that forward-looking statements involve risks
and uncertainties, which may affect CPAC's business and prospects, including
economic, competitive, governmental, technological and other factors discussed
in CPAC's filings with the Securities and Exchange Commission.
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