AURORA, Ill., Oct 30 (Reuter) - First Alert Inc, which reported lower 1996 third quarter sales and earnings, said Wednesday it will implement measures to improve results.
"We intend to take decisive actions to refocus and revitalize our product line to more effectively compete in the current market environment," said B. Joseph Messner, president and chief executive officer, in a statment.
He said these measures will seek to enhance the company's smoke and carbon monoxide detector product lines and related marketing programs, and to generate product and operating cost reductions.
First Alert has already begun to plan for 1997 and "most likely expects to have a plan in place in about one month," said Michael Rohl, chief financial officer, in a telephone interview.
Rohl provided no details of the actions that might be taken but said, "We will determine what we can do to improve our performance."
First Alert reported its 1996 third quarter net fell to $2.2 million or $0.09 a share from $8.7 million or $0.35 last year. Net sales declined to $60.9 million from $72.2 million.
Messner attributed the lower results to a highly competitive retail environment in the home safety category which resulted in a loss of distribution at certain accounts.
Gross profit in the 1996 third quarter, excluding depreciation, was $24.3 million, or 39.9 percent of net sales, down from $33.9 million or 47 percent of net sales in the third quarter of 1995.
Shares of First Alert were trading off 1/2 to 4-3/8. |
