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Leicester, NY… May 2, 2001 — CPAC,
Inc. (Nasdaq NNM: CPAK) today announced that earnings for its fiscal fourth
quarter ending March 31, 2001 are expected to be in the range of $0.11 to $0.14
per diluted share, down from $0.27 per diluted share for the same period last
year. CPAC's consolidated net sales for the fourth quarter are expected to be
approximately 11% lower compared to 2000, continuing the trend from the previous
quarter. The Company expects to release final fourth quarter numbers in early
June 2001.
Management stated that sales in the Fuller
Brands segment are anticipated to be down approximately 10% due to the continued
decline in sales in both the Stanley Home Products direct selling business and
the CTG commercial cleaning division. The U.S. commercial cleaning industry as a
whole has again experienced weak sales during this quarter. On the Imaging side
of the business, sales are expected to be about 13% lower, with the majority of
the shortfall coming from the domestic imaging chemical business. The
conventional film imaging industry in the U.S. has suffered from reduced sales
volumes throughout fiscal 2001.
Thomas N. Hendrickson, Chief Executive Officer
for CPAC, Inc., said, "Although clearly disappointed by this quarter's
performance, we are more deeply concerned with reduced consumer confidence that
is impacting many industries throughout the U.S. marketplace. We continue to
believe our divisional marketing and new customer strategies will reverse
negative sales trends. However, overall consumer confidence indicates that
strong sales growth is not likely for the
first half of fiscal 2002, and may be an ongoing challenge throughout the
year." On a positive note, management pointed out that sales to a
significant sweepstakes customer have finally stabilized.
Management further stated that the balance sheet
and cash flows remain strong, supporting a June dividend. "The Board of
Directors plans to announce the specific record and distribution dates for our
dividend when the final year-end results are announced in early June," said
Mr. Hendrickson.
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, 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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