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[July 2001]
Canadian Brickmaker Put Q1 Results into Context
Brampton Brick Ltd (Brampton, Ontario, Canada) reported net income for the three months ended 31 march 2001 of CAN$1.708 million. This was down from CAN$2.35 million for the same period last year.
The company explained that higher manufacturing expenses - notably the significant increase in natural gas prices and higher than normal costs charged against operations during the ramp-up phase of the new production line - were the primary factors contributing to the decrease in net income.
"Excess costs of approximately $450,000 incurred while bringing the new line up to optimum production levels had a negative impact on earnings in the quarter," stated Jeffrey Kerbel, President and CEO. "Now that the ramp-up phase is substantially complete, over the coming months the Company should begin to realize the economies of scale that are normally derived from higher production.
"And, except for last year when a number of positive factors combined to produce record net income, results for the first quarter of 2001 far exceed historical first quarter results."
Net sales for the quarter were CAN$11.448 million compared to CAN$11.222 million last year. Brampton brick is Canada's second largest producer of clay bricks and also holds a 38.2% interest in the largest producer of concrete block in Ontario. The company also provides truck transportation services through its 80% owned subsidiary, Roxy Construction. Medical Waste Management Inc - a 65% owned subsidiary - operates a facility for the destruction of biomedical and pharmaceutical waste in Ontario.
ENDS