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Uniroyal Global Engineered Products, Inc. Reports Financial Results For the First Quarter Ended April 3, 2022
Uniroyal Global Engineered Products, Inc. Reports Financial Results For the First Quarter Ended April 3, 2022.
About this update from Uniroyal Global Engineered Products, Inc.
[{"type":"text","content":"\n SARASOTA, Fla., May 13, 2022 (GLOBE NEWSWIRE) -- Uniroyal Global Engineered Products, Inc. (OTCQB:UNIR) today reported financial results for the first quarter of fiscal 2022 ended April 3, 2022. Financial Summary Net Sales of $20,070,551 declined 8.3% from the first quarter of the prior yearNet Loss of $545,356 versus Net Income of $1,036,001 which included non-recurring incomeLoss Per Common Share of $0.15 versus Earnings Per Common Share of $0.06 in the prior year Overview Delays in customer production levels due to supply shortages, primarily microchips to the Automotive manufacturers, the lingering effects of the Covid viruses, a ramped up inflationary environment, as well as unfavorable currency adjustments, all led to significant headwinds for the Company in the first quarter of this year. Our U.K. operations was negatively impacted in particular this quarter as 90% of its sales were to the Automotive Industry. Production delays in the Automotive Industry led to a decline of 16.8% in automotive sales for our U.K. operations versus the same quarter of the previous year. Our U.K. operations comprised 49.4% of our total sales this quarter. Unlike the first quarter of 2022, in the first quarter of last year Pre-tax earnings benefited in aggregate by approximately $1.0 million due to the Paycheck Protection Program and a favorable currency adjustment. To bolster liquidity until selling conditions to the Automotive Industry improve, beginning with the second quarter of this year, the Company’s majority shareholder waived interest payments on certain leases and notes for a twelve-month period and executive officers of the Company agreed to a reduction in their salaries for the same time period. The total amount of cost savings will be approximately $731,000 for fiscal 2022 and $244,000 for the first quarter of fiscal 2023. Net Sales Net sales for the first quarter of fiscal 2022 were $20,070,551 versus $21,896,001 for the first quarter of fiscal 2021, a decline of 8.3%. Revenue by Sector From a Sector perspective, Automotive sales which represented 59.4% of total Company sales, declined 15.0% for the quarter versus the same period last year. Automotive sales for our U.K. operations declined 16.8% while Automotive sales for our U.S. operations declined 9.1% versus the prior year as we continued to experience customer prod...