Detrex Corporation (Pink Sheets: DTRX), announced today 2012 third quarter net income from continuing operations of $448,426, or $0.26 per fully diluted share, compared to net income from continuing operations of $828,349, or $0.49 per fully diluted share, in the third quarter of 2011. The Company also announced that it will pay a $0.25 quarterly dividend on December 12, 2012 to shareholders of record as of November 27, 2012.
Third quarter net sales were $10.1 million compared to the record $14.1 million generated in the comparable period last year. The change in sales is largely the result of the absence of 2011 tolling revenues that did not repeat this year combined with lower sales to a large customer. In addition, general market activity in industrial lubricants has been sluggish since the middle of the second quarter 2012. Year-to-date sales through September 2012 were $33.5 million which is below the $38.3 million in the comparable period of 2011. Most of this decrease is attributable to the year over year decline in the third quarter as discussed above.
President and CEO, Tom Mark said “We have seen lower sales in the third quarter compared to last year as the slow-down that began in the second quarter continued. As expected, we also experienced reduced sales to a major customer and had lower tolling revenues. In spite of this, we continued to invest in future growth initiatives. The core business remains strong and we are optimistic about long term prospects as we are generating opportunities for new and existing products with our global customer base. Our financial condition is solid and we are continuing to investigate strategic opportunities to enhance shareholder value.”
Net income including discontinued operations in the third quarter of 2012 was $363,235, or $0.21 per fully diluted share, compared to $1,405,172, or $0.83 per fully diluted share in the third quarter of 2011. The year-to-date net income including the gain on the sale of its subsidiary Harvel Plastics, Inc., reported in discontinued operations, was $18,218,730, or $10.58 per fully diluted share, compared to $3,941,666, or $2.33 per fully diluted share in 2011 which includes net income from Harvel in discontinued operations.