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Uniroyal Global Engineered Products, Inc. Reports Financial Results for the Fiscal Year Ended December 31, 2017
Uniroyal Global Engineered Products, Inc. Reports Financial Results for the Fiscal Year Ended December 31, 2017.
About this update from Uniroyal Global Engineered Products, Inc.
[{"type":"text","content":"\n\n SARASOTA, Fla., March 19, 2018 (GLOBE NEWSWIRE) -- Uniroyal Global Engineered Products, Inc. (OTCQB:UNIR) (or the “Company”) today reported its financial results for the fiscal year ended December 31, 2017.\n Financial Highlights *Net Sales of $98,138,060 decline 2.2% versus $100,377,278 of prior year on tepid U.S automotive sales*Gross Margins decline to 18.8% versus 22.8% in prior year due to timing of raw material increases versus selling price adjustments*Operating Expenses decline 6.4% versus the prior year*Company records Non-recurring tax charges of $2.9 million versus tax benefit of $1.9 million in previous year*Diluted Earnings Per Common Share were a loss of $0.17 versus income of $0.24 in the prior year, or a loss of $0.01 and income of $0.14 per share excluding the adjustments in both years Overview Several years ago the Company embarked on a geographic and customer diversification strategy with the acquisition of a major automotive supplier in the UK.  This acquisition complemented the Company’s growing penetration in the global automotive industry and diversified our automotive customer base. This strategy lead to significant benefits in 2017 which from a consolidated basis was a very tough year as Net Sales and Operating Income declined from the prior year. Our European operations (54.4% of Net Sales) had a superb year, increasing Net Sales 10.6% versus the prior year, however, this increase virtually offset a very sluggish year in our North American operations where Net Sales declined 14.1% versus the previous year.  Automotive sales (67.5% of Net Sales) were the major contributor for both our European and North American operations.  In Europe, automotive Net Sales increased 13.2% versus last year due to increased penetration of existing customers and the awarding of new platforms while in North America Net Sales declined sharply as volume from the platforms in which we participate was very sluggish and manufacturers had to curb production levels because of lower demand.  We are working to reposition and expand our automotive product lines to gain a greater breadth of penetration into the North American market as well as exploring opportunities for further geographic expansion to bolster our growth. We also experienced significant raw material price increases this year. ...