(NYSE Amex: CCF)
today reported revenues of $29.4 million for the quarter ended February 29, 2012. This represents an increase of 11.8% compared to $26.3 million in the second quarter of last year. Net income of $1.2 million decreased $0.22 million from $1.42 million in the prior year period. Earnings per diluted share of $0.13 in the second quarter of fiscal 2012 fell short of the $0.16 per share in fiscal 2011.
For the six months ended February 29, 2012 revenues increased $4.1 million or 7.1% to $61.6 million compared to $57.5 million in the prior year period. Net income decreased $0.83 million or 19.1% to $3.52 million or $0.39 per share in the year to date period from $4.35 million or $0.48 per share in fiscal 2011.
Peter R. Chase, Chairman and Chief Executive Officer commented: “The second quarter was fairly typical in terms of seasonality limiting construction sales and, as in the first quarter, the sales mix continued to favor products with traditionally lower margins. Our consolidation program continues to progress with the Winnersh, UK relocation completed and Randolph tape products moving to Oxford during the balance of this calendar year. As a result, manufacturing costs have increased in the short-term due to non-recurring transition related expenses.
We are off to a good start in March and look for better results as we move ahead. Our merger and acquisition program remains active with a number of potential candidates.”
Revenue for the Industrial Materials segment increased over the prior year as greater demand in the power cable and communication cable markets resulted in increased wire and cable product sales. This was partially offset by decreased sales of electronic coatings products as well as lower sales into the aerospace and transportation product markets.
The Construction Materials segment also saw increased revenues over the prior year primarily due to sales of pipeline tape products produced at the Company’s UK facility. Overall profit margins in the Construction Materials segment are lower than what is seen in the Industrial Materials segment.