Northern Technologies International Corporation Reports Financial Results for Third Quarter Fiscal 2020

About this update from Northern Technologies International Corporation

[{"type":"text","content":"MINNEAPOLIS, July 08, 2020 (GLOBE NEWSWIRE) -- Northern Technologies International Corporation (NASDAQ: NTIC), a leading developer of corrosion inhibiting products and services, as well as bio-based and biodegradable polymer resin compounds, today reported its financial results for the third quarter of fiscal 2020. \n Third quarter fiscal 2020 financial and operating results include (with growth rates compared to third quarter fiscal 2019 results): Consolidated net sales decreased 34.6% to $9,745,000ZERUST® industrial product net sales decreased 24.1% to $6,258,000ZERUST® oil and gas net sales decreased 51.9% to $425,000NTIC China product net sales decreased 16.3% to $3,089,000Natur-Tec® product net sales decreased 50.4% to $2,388,000Joint venture operating income decreased 49.0% to $1,688,000Operating expenses declined 10.2% to $5,651,000NTIC reported a net loss attributable to NTIC of $(965,000), or $(0.11) per shareConsolidated balance sheet at May 31, 2020 was strong with no debt, total cash and cash equivalents of $5,051,000 and available for sale securities of $5,451,000, and working capital of $28,135,000 “Although our operations were deemed essential and remained open throughout, the COVID-19 pandemic had an unprecedented impact on our worldwide business during the third quarter, as the majority of our global customers operated at significantly lower capacities or were locked down altogether. Furthermore, our joint venture network experienced challenging market conditions, as joint venture net sales for the third quarter declined 32.4% and we experienced a 49.0% decrease in joint venture operating income, in each case compared to the same period last fiscal year. During the quarter, we focused on providing uninterrupted order fulfillment, while simultaneously safeguarding and supporting both our employees and our customers, and proactively managing expenses,” said G. Patrick Lynch, President and Chief Executive Officer of NTIC. “As global economies have been re-opening, business trends have started to improve. We currently believe our fourth quarter financial results will regain ground from third quarter levels, but sales and earnings will likely be lower than they were during the same period in 2019. We continued to benefit from our product and end-market diversification strategies in the third quarter, and intend to co...

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