 |
 |
||||||
[August 2008]
Brampton Brick Q2 Highlights
For the quarter ended 30 June 2008, Brampton Brick Ltd (Brampton, Ontario, Canada) achieved net income of C$3.248 million comprised of net income from continuing operations of C$3.607 million and a loss from discontinued operations of C$359,000. For the comparable period in 2007, total net income was comprised of net income from continuing operations of C$6.269 million and net income from discontinued operations of $243,000.Net sales from continuing operations for the quarter were C$29.795 million compared to C$29.250 million in 2007. Net sales in the Masonry Products business segment increased by C$936,000 on the strength of higher shipments, which in 2008 included shipments of new concrete masonry products. Net sales in the Landscape Products business segment declined by C$391,000.
Lower production volumes, primarily in the Landscape Products business segment, in the second quarter of 2008 compared to the second quarter of 2007 resulted in an increase in unabsorbed manufacturing expenses charged against operations. This variance accounted for most of the increase in cost of goods sold. Higher distribution costs, due to an increase in delivery expenses and higher personnel costs, also contributed to the increase in cost of goods sold.
Production volumes have been lowered in 2008 to reduce inventories to more closely match anticipated sales volumes. Selling expenses increased marginally over last year primarily due to higher advertising and other marketing expenditures related to the introduction of new products.
Construction of the company’s new clay brick manufacturing plant in Indiana, which commenced in 2007, is substantially on schedule and is expected to be completed in the fourth quarter of 2008.
Brampton Brick is Canada’s second largest manufacturer of clay brick and also manufactures concrete paving stones, retaining walls, garden walls and enviro products in Canada and the USA under the Oaks Concrete Products trade name. Additionally, the company manufactures a range of concrete masonry products including stone veneer, window sills and concrete brick. Products are used for residential construction and for industrial, commercial and institutional building projects. Da Vinci Stone Craft Ltd, a 75% owned subsidiary, manufactures fireplace surrounds and accessory products. The company also holds a 50% joint venture interest in Universal Resource Recovery Inc, which is constructing a waste composting facility in Welland, Ontario.
www.bramptonbrick.com
ENDS