International Absorbent 1Q net income of $166,000
Jun 14, 2005. International Absorbents Inc., parent of Absorption Corp., reported net income of $166,000 on sales of $5.89 million for its first quarter ended April 30, 2005, compared to income of $602,000 on sales of $5.5 million for the year-ago period.
Jun 14, 2005. /Lesprom Network/. International Absorbents Inc., parent of Absorption Corp., reported net income of $166,000 on sales of $5.89 million for its first quarter ended April 30, 2005, compared to income of $602,000 on sales of $5.5 million for the year-ago period.
"Our financial results for the quarter were at the lower end of what was anticipated based on two significant factors," said Gordon Ellis, chairman of International Absorbents. "First, we experienced an extended period of start-up challenges at our new Jesup facility. Second, we incurred promotional and marketing expense in excess of our budget."
"Jesup is now operating closer to expectations and we do not expect the increased promotional expenses to continue in the future. Increased utility rates, depreciation, fuel surcharges and costs related to heightened regulatory requirements have also been additional factors contributing to lower-than-prior results."
The company also announced plans to launch new product lines, but did not give specifics.