Spartech released record earnings once again. A short article appeared in the St. Louis Post-Dispatch about the company. There are a few tidbits in here that were not mentioned in the recent press release.
Here are the highlights:
Spartech Corp. said its profit rose 33 percent in the fourth quarter and 32 percent for the year that ended Oct. 31. The plastics company also increased its quarterly dividend to 7 cents a share from 6 cents.
It was Spartech's seventh straight year of higher sales and earnings. Sales jumped 30 percent to $654 million, partly because of acquisitions.
President Bradley Buechler credited the strong numbers to the acquisitions, new products and cost-cutting. During the year, Spartech persuaded other companies to use its plastic in making at least 25 products that traditionally had been made of other materials. For example, Spartech sold 800,000 pounds of plastic for the cores of paint rollers, which usually are made of paper.
The company is adding 40 million to 50 million pounds of capacity to the more than 600 million it already has. Investments include new lines in Wichita, Kan., and Cape Girardeau, Mo., and upgrades in Taylorville, Ill.
Spartech introduced its first alloy plastics in the past year and will come out with five more this summer, Buechler said. The alloys - different kinds of plastic layered together - are used as substitutes for leather, granite, fiberglass and other materials. The alloys profit margin is about double that of regular plastic.
Buechler said other acquisitions are being discussed. He added that he is comfortable with analysts' forecasts of $1.35 per share profit in the coming year. |
