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Sales for Disposable Protective Apparel segment drop at Alpha Pro
17
Mar '11
Alpha Pro Tech Ltd, a leading manufacturer of products designed to protect people, products and environments, including disposable protective apparel and building products, announced financial results for the fourth quarter and year ended December 31, 2010.

Consolidated sales for the fourth quarter of 2010 decreased 54.0% to $8.7 million from $18.9 million in the comparable quarter in 2009. Sales for the Disposable Protective Apparel segment for the fourth quarter of 2010 decreased by 57.8% to $2.8 million, compared to $6.5 million for the same period in 2009. Building Supply segment sales for the fourth quarter of 2010 increased by 11.5% to $4.5 million, compared to $4.0 million for the same period in 2009.

The sales mix of the Building Supply segment for the fourth quarter of 2010 was 69% for synthetic roof underlayment and 31% for housewrap. This compared to 74% for synthetic roof underlayment and 26% for housewrap for the fourth quarter of 2009. Infection Control segment sales for the fourth quarter of 2010 decreased by 83.2% to $1.4 million compared, to $8.4 million for the same period in 2009. Mask sales were down by 89.1%, or $6.6 million, and shield sales were down by 58.1%, or $0.5 million, in the fourth quarter of 2010.

Al Millar, President of Alpha Pro Tech, commented, “The decrease was partially due to a decline in sales of disposable apparel to our former largest distributor. We have sold and continue to expect to sell our apparel line to this distributor, excluding shoe and boot covers, but at lower than current levels. The change in our relationship with this distributor adversely affected sales in 2010 but could be beneficial in the long term as we are now developing a broader base of distribution.

“This has been demonstrated, in particular, with a major international supply chain partner with whom we have achieved a preferred vendor status and from whom we received an award for Outstanding Sales Growth Results for two consecutive years, 2009 and 2010, in our category.

“We also received an award from this supply chain partner for Outstanding Delivery Quality for our aggregate service level performance in 2010. Further, Alpha Pro Tech was a finalist for this supply chain partners Overall Supplier of the Year award for 2010 across all categories. Sales to this major strategic channel partner nearly doubled in 2010.”

Mr. Millar continued, “Our distribution strategy continues to strengthen, and we remain excited about the future of the Building Supply segment. Reception has been excellent for our ICC ES (International Code Council Evaluation Service)-approved REX Fortis housewrap, our first non-perforated breathable housewrap, which we launched in the fourth quarter of 2010. Revenue commenced in the fourth quarter and we expect it to contribute to our growth in 2011.”

Mr. Millar concluded, “The decrease in mask and shield sales for 2010 was primarily attributable to decreased demand relating to the global H1N1 Influenza A pandemic in 2009.”


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