NTIC 11.3 - biz.yahoo.com
MINNEAPOLIS, July 9 /PRNewswire-FirstCall/ -- Northern Technologies International Corporation (Nasdaq: NTIC - News) today announced third quarter earnings of $788,148, or $0.21 per diluted common share, for the three-month fiscal period ended May 31, 2008, an increase of 26 percent over the $627,800, or $0.17 per diluted common share reported in the comparable period in fiscal 2007.
Fiscal year-to-date earnings totaled $2,106,034, or $0.56 per diluted common share, an increase of 2 percent versus net income of $2,066,227 or $0.56 per diluted common share, in the comparable period in fiscal 2007. This slight increase was primarily the result of a one-time gain on the sale of a building of $724,495 during the prior year period. Excluding that item, net income increased 57 percent during the first nine months of fiscal 2008 compared to the same period of fiscal 2007 primarily as a result of increased income from the company's corporate joint ventures and holding companies.
Consolidated net sales in North America for the third quarter of fiscal 2008 totaled approximately $3.3 million compared to $4.4 million in the same period in fiscal 2007, a decrease of approximately 25.8 percent. Consolidated net sales in North America for the fiscal 2008 year-to-date period totaled approximately $9.5 million compared to $12.9 million in the same period in fiscal 2007, a decrease of approximately 26.3 percent. The decline in net sales for both periods was primarily the result of the anticipated loss of a significant customer of the company's React-NTI, LLC subsidiary. This development, however, had a minimal impact on the company's net income. The company anticipates that its net sales will continue to decrease significantly during the remainder of fiscal 2008 relative to fiscal 2007 as a result of the loss of its React-NTI customer. However, NTIC does not expect that the decrease will have a material adverse effect on NTIC's future net income.
In addition to Zerust® products and services, NTIC's consolidated net sales in North America for the nine months ended May 31, 2008 included $204,998 in sales of NTIC's Natur-Tec(TM) products, which are part of NTIC's new biodegradable and compostable plastics line. These sales represent the first sales of this new product line, most of which were initial sales to new customers.
Sales of NTIC's Zerust® and Natur-Tec(TM) products increased 4.5 percent or $393,211 to $9,226,494 during the nine months ended May 31, 2008 compared to $8,833,283 during the nine months ended May 31, 2007.
"Our strong quarterly and year-to-date earnings represent robust momentum in our international core corrosion protection business," said G. Patrick Lynch, NTIC president and chief executive officer. "It is our goal over the next few quarters to compensate for any future decline in our North American sales through market demand for our new Natur-Tec(TM) (biodegradable plastics) products and continued increased international sales of our Zerust® products."
NTIC's international business continues to significantly expand as total net sales of all of NTIC's joint ventures increased 34.8 percent to $79,893,753 during the nine months ended May 31, 2008 compared to $59,265,028 during the nine months ended May 31, 2007. NTIC's income from its corporate joint ventures and holding companies increased 87.1 percent to $3,880,352 for the nine months ended May 31, 2008 compared to $2,073,994 for the nine months ended May 31, 2007.
NTIC's working capital was $5,398,182 at May 31, 2008, including $418,994 in cash and cash equivalents. As of May 31, 2008, NTIC did not have any borrowings under its $2,300,000 demand line of credit. |
