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Lakeland Industries Q1 net income rises 5.9% for FY'07

09
Jun '06

Protective garments manufacturer and seller Lakeland Industries Inc announced that net sales increased $1.5 million, or 5.9 percent, to $27.2 million for the three months ended April 30, 2006 from $25.7 million for the three months ended April 30, 2005.

Gross profit increased $0.4 million, or 5.9 percent, to $6.5 million for the three months ended April 30, 2006 from $6.2 million for the three months ended April 30, 2005. Gross profit as a percentage of net sales was 24.0 percent both for the three months ended April 30, 2006 and for the three months ended April 30, 2005.

Operating profit decreased 14.9 percent to $2.2 million for the three months ended April 30, 2006 from $2.5 million for the three months ended April 30, 2005. Operating margins were 8.0percent for the three months ended April 30, 2006 compared to 9.9percent for the three months ended April 30, 2005.

Sales in Q1 were firm in February and March but were heavily impacted in April by DuPont's introduction of new product sizing and patterns for their Tyvek garments. Therefore, DuPont heavily discounted and promoted their old garment inventory in a clearance sale in late March 2006.

This clearance sale filled supply lines leading to abnormally weak pricing and sales in April for Tyvek Protective Garments. Additionally, petrol-chemical refinery facilities have been running flat out given the current shortage of diesel oil and gasoline and the concomitant high prices paid to refineries that follow such shortages. Consequently, many have postponed their normal spring maintenance schedules where our disposable garments are used in large quantities.

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