"Volume wins late in the first quarter of the year set the stage for the first year-over-year increase in Performance Chemicals pounds sold since the fourth quarter of 2005. This occurred despite a very weak carpet end-use market."
Additionally, we began shipments to new Decorative Products customers based on business wins late in the first quarter. Record high raw material costs, up $6.5 million versus the second quarter of last year, negatively impacted margins in the second quarter of this year.
However, new pricing actions are expected to result in margin expansion in the third quarter. We expect year-over-year sales growth to continue throughout the remainder of the year as we leverage innovative new products and take advantage of new market opportunities and business wins.
Raw material cost concerns, driven by volatile oil and natural gas prices, are expected to continue throughout the year, but we remain diligent on cost reduction efforts and necessary pricing actions to improve profitability.
"As recently announced, the Company successfully completed a major refinancing replacing its high fixed interest rate long-term debt with variable interest rate long-term debt. At debt levels and interest rates which existed at May 31, 2007, the Company's annualized interest expense savings would be approximately $6.0 million."
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.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
