Domco Tarkett Reports Strong Third Quarter
Consolidated net sales for the third quarter were up 2.2% to $170.4 million compared to $166.8 million the previous year. 85.0% of sales were generated in the U.S. market, compared to 83.9% for the same period last year. Taking into account last year's exchange rates, sales for the third quarter would have decreased by 1.7% to $164.0 million from the corresponding quarter in 2000. For the first nine months of the year, sales increased 1.5% to $510.4 million. At constant exchange rates, sales would have declined by 2.5% for the first nine months of 2001.
These results reflect a strong performance in the hardwood segment, modest growth in distribution activities and a decrease in the resilient flooring business.
On a segmented basis, third quarter sales in resilient flooring were $122.5 million compared to $126.7 million for the corresponding quarter last year. For the nine months, sales were $369.5 million compared to $386.6 million a year ago.
``The decline in the residential market has been a factor for several quarters and reflects the growth of other flooring surfaces like wood and ceramic in this segment. New products are being developed to help improve our position. As well, sales of commercial resilient flooring have increased,'' stated Mattsson.
Sales in the hardwood-flooring segment continued to grow, accounting for 28.1% of consolidated net sales, compared to 24.1% during the third quarter last year. Sales in this area rose 19.3% to $47.9 million compared to $40.1 million for the first nine months compared to $116.3 million a year ago.
Sales related to distribution activities totaled $20.9 million, compared to $21.3 million or a decrease of 1.5% over the same quarter of 2000. Sales for the first nine months of 2001 were $60.3 million compared to $58.9 million for the corresponding period in 2000. This increase is due to the March 2001 acquisition of part of the assets of HFI Hardwood Flooring Inc., a wood distributor in Western Canada.
Mattsson stated that the company was able to post significant improvement in earnings over last year's third quarter.
``This is a confirmation of the positive impact of our strategy and restructuring measures. However, considering the continuing uncertainty of the political and economic environment, we remain cautious,” Mattsson said. “We expect a challenging fourth quarter, but will nevertheless continue our strategy to increase profitability of Domco Tarkett through a combination of cost improvements and by aggressively promoting and enhancing our product offerings.''