Zindart Limited 2nd Quarter: Profit Swings Positive As Marketing and Sales Activities Kick In
SAN FRANCISCO--(BUSINESS WIRE)--Nov. 14, 2001--Zindart Limited (Nasdaq:ZNDT - news) today reported net income of $205,000 for the second quarter ended September 30, 2001, a $2.8 million favorable swing from the first quarter of the fiscal year.
With improved performances at its Zindart and Hua Yang operating divisions, the company achieved profitability in spite of competitive pressures affecting toy and premium manufacturers around the world.
Net sales for the quarter were $37.7 million compared to $33.3 million for the second quarter of last year. Net profit was $205,000, compared to $325,000 for the second quarter of last year. From April 1, 2001 through September 30, 2001 Zindart's revenues are $66.0 million as opposed to $68.6 million during the same period in fiscal 2001.
Marketing Changes Pivotal
New direct sales forces, focused on expanding into new channels and further penetration of the United States market, have improved performance at both Corgi and Hua Yang, according to Peter A. J. Gardiner, chairman, Zindart Limited. Additionally, the company has also restructured the marketing organization at Corgi Classics, Zindart's consumer branded die-cast collectibles subsidiary, and Corgi has begun adding promotional activities supporting its retail customers.
``The strategy we began implementing nine months ago, with the goal of transforming Zindart from a regional Asian manufacturer into a multi-national, global company with strong product brands and a marketing-driven organization, has begun to pay off,'' Gardiner said. ``We now have everyone in the company focused on expanding the customer base for our products, penetrating new channels and markets and improving operational efficiency in our manufacturing operations.''
Zindart's Corgi business continues to grow. Trade sell-through of its collectible line has been strong during this quarter and pre-sell reception to Corgi's new 2002 lines has been excellent, according to Gardiner. Specifically Corgi's new U.S. offerings including its expanded ``Unsung Heroes'' military range and its line of fire fighting vehicles continue to perform well, he said.
Hua Yang was able to secure additional specialty packaging commitments this quarter. One of only a few printing and specialty packaging companies globally capable of producing extremely intricate die cuts and foldings, often printed in custom colors that are an integral part of product branding, Hua Yang has several customers in the French fragrance industry.
Zindart Manufacturing Undergoing Improvements
During the quarter, the company also has turned its attention to improving its manufacturing operations. A comprehensive review of manufacturing operations is underway and action is being taken to improve productivity and customer satisfaction levels.
``We believe that we have determined several ways to achieve a better cost structure, while still raising product quality,'' Gardiner said. ``These changes are even more relevant, given the increasingly challenging market and general economic conditions currently prevailing.''
Zindart will also be re-staffing several positions at the management level in the manufacturing company, Gardiner said.
Gardiner said he intends to spend most of his time in Hong Kong and China, supervising these changes. |
