Zindart Limited Announces FY 2001 Financials: $2 Million in Profits on Flat Sales, Major Progress in the U.S.
SAN FRANCISCO--(BUSINESS WIRE)--June 11, 2001--Zindart Limited (Nasdaq:ZNDT - news) today announced financial results for the fiscal year ended March 31, 2001.
Net sales for fiscal 2001 were $136.1 million compared to $137.1 million for fiscal 2000. Net income for fiscal 2001 was $2.2 million or $0.25 per share diluted against $9.0 million or $1.02 per share diluted for fiscal 2000.
``Fiscal 2001 was not a great year for Zindart. However, we delivered profits in an extremely difficult market, unlike some of our competitors,'' Peter A. J. Gardiner, Chairman, Zindart, said. ``The softness in the industry, particularly the worldwide die-cast market, had an adverse effect on our large customers. Major initiatives in other areas of our business could not offset this impact. That said, we believe that the groundwork has been laid for substantial improvement in 2002 and beyond.''
Change in Strategic Direction
Gardiner was elected Chairman in September 2000.
``Since that time we have made fundamental changes to the strategic direction of the company. Zindart has become a marketing-driven company with a global branding plan. We have strengthened our balance sheet and moved aggressively into the U.S. market. I am excited and quietly confident regarding the growth potential for the company.
``All companies in the Zindart group are pressing ahead to secure a greater share of the U.S. market for their respective offerings,'' Gardiner said. ``Corgi established a U.S. headquarters and has already rolled out several new American-focused product lines with further segment expansion underway. Zindart is in the process of establishing a direct sales force, which is allowing the company to shift the profile of its customer base, and is leveraging its manufacturing expertise to win contracts in new categories. Hua Yang now has a direct sales force in the two largest publishing capitals of the world, London and New York, and has coverage in Europe, the Far East and Australasia.
``In sum, Zindart has become a global company determined to capture share in the U.S., the largest single market in the world,'' Gardiner said. ``Our global branding effort, together with our historic strengths in product engineering and manufacturing, allow us to contemplate a stronger performance in the future.''
About Zindart
Zindart's operating subsidiaries include Corgi Classics Limited, Hua Yang Printing Holding Company Limited and Zindart Manufacturing.
Corgi Classics Limited produces a high-quality line of die-cast replica items sold through retail channels in the U.K., where Corgi holds a dominant share of the market, and in the U.S. Hua Yang Printing Holding Company is a producer of quality books and specialty packaging.
Zindart Manufacturing provides both product design and quality turnkey manufacturing for well-known multinational companies that offer branded products requiring rapid, high-volume delivery.
Founded in 1978, Zindart is based in Hong Kong with offices in the U.S. and the U.K. The company's current strategy calls for increased penetration of U.S. markets by broadening its customer base, targeting new customers, expanding the direct sales force and strengthening its brand-related efforts. |
