Uniroyal Global Engineered Products, Inc. Reports Net Income Of $1,300,044, Or $0.07 Per Diluted Share, Before Dividends, For The Quarter Ended 10/2/16 Vs $837,803, Or $0.04 Per Diluted Share, Before Dividends, For The Quarter Ended 10/4/15
Uniroyal Global Engineered Products, Inc. (OTCQB:UNIR) (or the "Company") today reported its financial results for the quarter ended October 2, 2016 compared to the quarter ended October 4, 2015. Three Months Ended October 2, 2016 Net Sales Net Sales for the third quarter increased 6.2% to $24,675,521, a gain of $1,450,322 versus the prior year, which represented the highest year over year increase for any quarter of this fiscal year. Included in the reported sales is a negative currency impact of $890,000. Without the currency fluctuation, Net Sales would have increased 10% for the quarter. Sales for the third quarter to the automotive industry (68.0% of total Net Sales) increased 14.4% versus last year due to sharp increases in both Domestic and European operations. "We continue to record strong results in Global automotive sales as product innovation and cost improvement programs are recognized by major OEM's. This has resulted in increased market penetration," noted Howard Curd, Chairman. Sales to the industrial and consumer segments (32.0% of total Net Sales) declined 7.8% versus last year. Seating applications for industrial equipment manufacturers showed improvement in the quarter after a sluggish first six months, but consumer sales (recreational and residential) declined, impacted by the continued slow Global economic recovery. Net Income Available to Common Shareholders Net Income Available to Common Shareholders increased to $578,015 versus $139,304 in the prior year quarter, representing a gain of $438,711, or three times greater than that of the previous year. The increase versus the prior year quarter was due to the improvement in Net Sales and sharply lower General and Administrative expenses. Gross Profit Margins contracted during the third quarter to 21.7% versus 23.2% for the third quarter of the previous year. The reduction in the margins was primarily caused by a decline in higher margin industrial and consumer sales.