Empire Resources Announces Third Quarter Results and Comments On The Investigation of its Principal Supplier for Anti-Dumping Vi
November 10 2003 - 8:01AM
PR Newswire (US)
Empire Resources Announces Third Quarter Results and Comments On
The Investigation of its Principal Supplier for Anti-Dumping
Violations FORT LEE, N.J., Nov. 10 /PRNewswire-FirstCall/ -- Empire
Resources, Inc. a distributor of value added, semi-finished
aluminum products, today announced net income for the three and
nine months ended September 30, 2003 of $887,000 and $2,747,000 as
compared to $658,000 and $2,030,000 for the same periods in 2002.
Net sales for the three and nine months were $46,645,000 and
$138,455,000 as compared to $40,567,000 and $118,821,000 for the
same periods in 2002. Net sales increased 15% for the three month
period and 17% for the nine month period as compared to the prior
year. The Company also announced that on October 16, 2003, Alcoa,
Inc. filed a petition with the Department of Commerce ("DOC") and
the International Trade Commission ("ITC") for the imposition of
anti-dumping duties on imports of certain aluminum rolled plate
from Hulett Aluminum, Ltd. ("Hulett"), the Company's principal
supplier. The petition relates to one specific product produced by
Hulett -- Series 6000 Aluminum Rolled Plate. Hulett produces
numerous other products that the Company presently imports. Hulett
announced that it will contest the allegations, which it believes
are flawed. It is expected that the investigation could take up to
a year to complete. The Company is unable to assess the specifics
of the allegations against Hulett at this time as the key economic
data has been redacted from the petition. Counsel has advised the
Company that, in general, anti-dumping duties may only be assessed
prospectively. According to counsel, two conditions must be met for
an anti-dumping duty to be assessed. First, the DOC must decide
that the product is being sold in the United States at less than
fair value. Second, the ITC must determine that the United States'
industry is materially injured or threatened with material injury
by reason of the imports. The Company has been assured by Hulett
that it will continue to ship the product, pending the results of
the investigation. In the event that Hulett, in the future, ceases
supply of the product and if the Company is unable to secure an
alternative source of supply for the product at comparable volumes
and prices, the Company's future results of operations could be
adversely affected. Sales of the product, subject to the petition,
in the nine-months ended September 30, 2003 represented
approximately 17% of the Company's revenues for the period. Empire
Resources, Inc., is a distributor of a wide range of semi-finished
aluminum products to customers in the transportation, automotive,
housing, appliance and packaging industries in the U.S., Canada,
Australia and New Zealand. It maintains supply contracts with
aluminum mills in various parts of the world. This press release
contains forward-looking statements. Such statements involve
various risks that may cause actual results to differ materially.
These risks include, but are not limited to, the timetable and
scope of the anti-dumping investigation, the volume of aluminum
alloy rolled plates sold by the Company, other components of the
Company's revenue, and other risks referred to in the Company's
registration statements and periodic reports filed with the
Securities & Exchange Commission. Condensed Consolidated
Statements of Income (unaudited) In thousands, except per share
amounts Three Months Nine Months Ended September Ended September
30, 30, 2003 2002 2003 2002 Net sales $ 46,645 $ 40,567 $ 138,455 $
118,821 Cost of goods sold 43,373 37,763 128,670 110,501 Gross
profit 3,272 2,804 9,785 8,320 Selling, general and 1,514 1,461
4,525 4,228 administrative expenses Operating income 1,758 1,343
5,260 4,092 Interest expense 251 274 726 801 Income before income
taxes 1,507 1,069 4,534 3,291 Income taxes 620 411 1,787 1,261 Net
income $ 887 $ 658 $ 2,747 $ 2,030 Weighted average shares
outstanding: Basic 9,469 9,676 9,445 10,261 Diluted 9,784 9,819
9,638 10,399 Earnings per share: Basic $ 0.09 $ 0.07 $ 0.29 $ 0.20
Diluted $ 0.09 $ 0.07 $ 0.29 $ 0.20 DATASOURCE: Empire Resources,
Inc. CONTACT: William Spier of Empire Resources, Inc.,
+1-212-759-3287 ext. 101, or Web site:
http://www.empireresources.com/
Copyright
Empire Resources (AMEX:ERS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Empire Resources (AMEX:ERS)
Historical Stock Chart
From Jul 2023 to Jul 2024