Tufco Technologies Reports Significant Increase in Q3 Profits

Published: September 08, 2004, By pffc-online.com

PRESS RELEASE

GREEN BAY, WI, USA—Things are looking up for Tufco Technologies. According to a recent company release, the converter, diversified contract manufacturer, specialty printer, and producer of business imaging products, sales for its fiscal third quarter were $20.3 million (US), an increase of 42 percent over sales of $14.3 million (US) for 2003 fiscal Q3. In addition, states Tufco, its sales for nine months, ending June 30, 2004, were $53.5 million (US), an increase of 35 percent over the $39.6 million (US) in sales for the same period last year.

"A little over a year ago, we announced we were losing significant contracts from a customer who had elected to take those products for their own manufacturing locations," notes Tufco president/CEO Louis LeCalsey. "Subsequently, we announced that we had significant new contracts from customers, which would more than replace the contracts."

He adds, "The year-to-date performance reflects this, and future quarters should confirm the sustainabiity of this growth trend. During the third quarter, we started up several of these new projects and completed...new projects [that] were begun last December. Our start-up costs on new projects during the third quarter were higher than the level we routinely experience from commercial production and were the direct result of the start-up production on new projects. We are now through with our major start-ups and and thus, the fourth quarter profitability should show the benefit of operating in a stable, commercial mode without the burden of start-up costs."

Tufco also says that during Q3 this year, the company sold its thermal bond laminator to an undisclosed buyer for the price of $475,000 (US). LeCalsey notes Tufco will report a gain of approximately $400,000 when the sale is completed early in fiscal 2005.

"The laminator sale is consistent with a key strategic focus for Tufco — which is manufacturing wipes products — and we believe the floor space currently occupied by the thermal bond laminator, once vacated, will enable us to install more converting lines that will provide Tufco with greater financial returns than currently generated in that same plant space," LeCalsey adds.

Learn more about Tufco at tufco.com.