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Acme United Corporation (NYSE AMEX:ACU) today announced that net sales for the quarter ended March 31, 2011 were $14.4 million, compared to $13.1 million in the first quarter of 2010, an increase of 10%. Excluding the recent acquisition on February 28, 2011 of the Pac Kit Company, one of the oldest manufacturer’s of first aid products, comparable sales increased by 5%.
Net sales for the first quarter of 2011 in the U.S. segment increased 10% compared to the same period in 2010 primarily due to increased sales of the Company’s PhysiciansCare and Pac-Kit branded first aid products. Net sales in Canada in the first quarter of 2011 increased 18% in U.S. dollars and 11% in local currency compared to the same period in 2010. The increase is primarily the result of the introduction of new products. European sales in the first quarter of 2011 increased 3% in U.S. dollars and 4% in local currency compared to the first quarter in 2010.
Gross margins were 37% in the first quarter of 2011 compared to 39% in the first quarter of 2010. The lower gross margin in the first quarter of 2011 was mainly due to higher sales of seasonal over-the-counter medications.
Operating profit was $183,000 for the quarter ended March 31, 2011 compared to $301,000 for the comparable period last year. Operating profit in the first quarter of 2011 was reduced by approximately $100,000 in transaction and integration costs related to the Pac Kit Company acquisition.
Net income was $120,000 or $.04 per diluted share for the quarter ended March 31, 2011 compared to $214,000 or $.07 per diluted share for the comparable period last year. The decline in net income was the result of lower gross margins and the transaction costs associated with the acquisition of Pac-Kit.
Walter C. Johnsen, Chairman and CEO said, “Acme United had growth in all our business segments during the first quarter. Our new Air Shoc garden tools began shipping, and were well received. The integration of Pac Kit has progressed as planned, and we look forward to leveraging operating efficiencies during the coming quarters.”