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Uniroyal Global Engineered Products, Inc. Reports Financial Results for the First Quarter Ended April 5, 2020
Uniroyal Global Engineered Products, Inc. Reports Financial Results for the First Quarter Ended April 5, 2020.
About this update from Uniroyal Global Engineered Products, Inc.
[{"type":"text","content":"\n SARASOTA, Fla., May 15, 2020 (GLOBE NEWSWIRE) -- Uniroyal Global Engineered Products, Inc. (OTCQB:UNIR) today reported its first quarter financial results for the period ended April 5, 2020. Financial Summary Net Sales declined 16.8% to $21,140,124Operating Income of $886,016 in line with prior yearNet Income declined 55.7% to $280,274 versus prior yearLoss per Common Share of $0.14 versus $0.04 in prior year Overview In reviewing the first quarter results, the periods ended January and February were trending favorably from an operational perspective in part as a result of the manufacturing efficiencies we have put in place over the last two years. With the advent of the coronavirus and the resultant actions taken by major OEM’s, Net Sales declined dramatically in March, falling approximately 36% versus the previous year, particularly as it relates to our Automotive business both in the U.S. and Europe. Our Automotive business represented 63% of overall Net Sales for the quarter as compared to 65% in the first quarter of the prior year. Gross Profit as a percentage of Net Sales increased to 18.1% in the quarter as compared to 17.0% in the quarter of the preceding year. Our Industrial business commands higher gross margins than our Automotive business and for the quarter this segment contributed 37% to overall Net Sales as compared to 35% in the first quarter of the prior year. In addition to a favorable sales mix, as previously mentioned, an important contributor to the improvement in margins was the realization of efficiencies put in place at our operations the last two years, particularly at our European manufacturing site. We have spent heavily for more efficient equipment at this site. As part of our goal of improving margins at our European operation, in August 2019, we shut down equipment that manufactured calender product which is very low margin business. We built sufficient inventory to supply customers until they could either arrange for alternate sources of product or until the Company was able to convert to an alternate film source to manufacture the product. This conversion reduced Net Sales in the short-term from the prior year period but should benefit margins in the long-term. Our improvement in Gross Profit this quarter versus last year is in part due to this conversion. Total Operating Expenses were be...