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Hallwood Group Inc posts lower gross profit margins in textiles

16 Aug '05

4 min read

Following is a comparison of results for the 2005 and 2004 periods:
Textile Products:
The textile products segment reported income before taxes of $3.3 million in the quarter, on revenue of $35.3 million, compared to income of $6.2 million, on revenue of $35.6 million in 2004. For the six months, the textile products segment reported income before taxes of $6.4 million, on revenue of $71.7 million, compared to income before taxes of $9.5 million, on revenue of $66.8 million in 2004. The decline was principally due to lower gross profit margins, as a result of changes in product mix and increases in certain production costs, principally energy and chemicals, offset by slightly increased sales for the six month period.

Other Income, Net:
Other income, net consisted of combined equity income from energy affiliates, interest income and expense and miscellaneous income and expense. For the 2005 and 2004 second quarters, other income was $532,000 and $827,000, respectively, including the combined equity income from energy affiliates of $500,000 in 2005 and $439,000 in 2004.

For the six months, other income was $627,000 and $1.1 million, respectively, including the combined equity income from energy affiliates of $194,000 in 2005 and $520,000 in 2004.

The 2004 periods also included amortization of deferred revenue from a noncompetition agreement in the amounts of $403,000 and $1.0 million in the second quarter and six month period, respectively.

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