SOUTHFIELD, Mich. -- Detrex Corporation (Pink Sheets: DTRX), a diversified manufacturer of PVC and CPVC pipe, duct and shapes and specialty chemicals including additives for industrial petroleum products and high purity hydrochloric acid, today announced first quarter net income of $345,209, or $0.22 per fully diluted share, compared to a net loss of $321,284, or $0.20 per fully diluted share, in the first quarter of last year.
Statements included in this press release that are not historical in nature are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “1995 Act”). The words “believe,” “expect,” “anticipate,” “estimate,” “guidance,” “target” and similar expressions identify forward-looking statements. The Company cautions readers that forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected in the forward-looking statements. Certain risks and uncertainties are identified from time to time in the Company’s reports. Some factors that could cause results to differ materially from those projected in the forward-looking statements include: market conditions, environmental remediation costs, pension expense and funding requirements, liquidation value of assets, and marketability of real estate and the market value and future liquidity of Detrex stock. The Company claims the protection of the safe harbor for forward-looking statements contained in the 1995 Act.First quarter 2010 revenues were $21.2 million which represents an 18% increase compared to prior year’s first quarter revenues of $17.9 million. This increase was the result of a 31.3% increase in sales at The Elco Corporation and a 12.9% increase at Harvel Plastics, Inc. Both companies generated higher year-over-year sales volumes by capitalizing on market opportunities and an improving economy. The gross margins of both companies improved significantly due to the higher volume, increased efficiency and greater pricing power. The increase in gross margin largely carried through to a like improvement in earnings before tax as other expenses were closely controlled.[Table Omitted]Commenting on the Company’s results for the first quarter of 2010, President and CEO Tom Mark said, “We are pleased with our return to profitability after a very difficult and unpredictable year. While some uncertainty remains about how the economic recovery will proceed, we believe that the improving demand for our product offering is a positive indicator. The key for the coming year is to capitalize on improvements in the economy with increased market penetration coupled with continued control of our costs.”
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