Business
Uniroyal Global Engineered Products, Inc. Reports Financial Results for the Second Quarter Ended June 30, 2019
Uniroyal Global Engineered Products, Inc. Reports Financial Results for the Second Quarter Ended June 30, 2019.
About this update from Uniroyal Global Engineered Products, Inc.
[{"type":"text","content":"\nSARASOTA, Fla., Aug. 05, 2019 (GLOBE NEWSWIRE) -- Uniroyal Global Engineered Products, Inc. (OTCQB: UNIR) today reported its second quarter financial results for the three months ended June 30, 2019.\n Financial Highlights  Net Sales declined 7.4% to $24.1 million versus $26.0 million in the prior year Net Income declined to $363,047 versus $924,493 in the prior year Loss per Common Share of $0.02 versus a prior year profit of $0.01 Overview Our second quarter faced several major headwinds particularly at the UK operations where a weak European economy, particularly in the automotive segment, and currency fluctuations negatively impacted our overall results. Despite disappointing European results which negatively impacted our overall performance this quarter, we are encouraged by the results of our US operations particularly in our Automotive segment where we were awarded new platforms. Our focus continues to be on retrofitting our UK operations, cutting costs and redirecting our manufacturing capabilities to improve our product mix with an emphasis on higher margin product lines. At our US operations we also continue to target higher margin product lines particularly in the Automotive segment focusing on the heavy truck and SUV vehicle segments. Overall, this will lead to better Gross Profit margins which have been negatively impacted by product mix and the timing of raw material costs which we expect to be largely offset over time. An area of particular success has been our targeted goal of reducing Operating Expenses as we reduced expenses $208,664 or 6.3% for the second quarter as compared to the prior year. Net Sales Net Sales for the three months ended June 30, 2019 declined 7.4% to $24,095,783 versus $26,023,233 in the prior year. Approximately 51.5% of the total Net Sales for the quarter were from our European operations and significant fluctuations in currency conversions negatively impacted overall Net Sales in the current quarter versus the prior year. Excluding the effect of currency fluctuations related to exchange rates, overall Net Sales would have declined 4.6% for the quarter as compared to the prior year. Automotive net sales which comprised 65.7% of overall Net Sales, declined 11.3% for the second quarter as compared to last year. The UK operations which continued to be challenged by a weak Eu...