Higher variable compensation in the third quarter of 2006 as compared to the prior year third quarter was the result of increased earnings.
The increase in net interest expense is attributable to higher average borrowings and higher interest rates. The decrease in minority interest expense is due to lower financial performance from the Company's minority affiliates.
Year-to-Date Summary Net sales for the first nine months of 2006 were $344.9 million, up 8.8 percent from $317.0 million for the first nine months of 2005. The increase in net sales was attributable to higher sales prices and volume growth.
Volume growth was mainly attributable to market share growth and increased demand in the U.S. and China. Selling price increases continue to be broadly implemented across all regions and market segments to offset significantly higher raw material costs.
Net income for the first nine months of 2006 was $8.7 million compared to $7.1 million for the first nine months of 2005, which included a $4.2 million pre-tax gain from the Company's real estate joint venture, partially offset by a $1.2 million pre-tax restructuring charge.
Gross margin as a percentage of sales was 30.5 percent for the first nine months of 2006, as compared to 30.8 percent for the first nine months of 2005.
Higher selling prices and a stronger performance from the Company's CMS channel helped maintain margins notwithstanding continued increases in raw material prices, particularly crude oil derivatives.
Selling, general and administrative expenses for the first nine months of 2006 increased $1.4 million compared to the first nine months of 2005.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
