CPI forsees Q4 losses but says shortfall will be corrected in 2004
Lower than expected revenue for the fourth quarter of 2003 has led profile and film extruder CPI Plastics Group (Mi...
Lower than expected revenue for the fourth quarter of 2003 has led profile and film extruder CPI Plastics Group (Mississauga, ON) to announced an anticipated loss for the quarter of $1 million to $1.5 million. Full year earnings for fiscal 2003, ended Dec. 31, 2003, are expected to be in the range of $144 million to $146 million.
Sales of the eon decking system are $6 million less than anticipated for the quarter, while film products sales are expected to be $2 million less than anticipated.
Due to the combination of lower revenues and high capital expenditures in the last half of 2003, CPI has decided to postpone construction on its head office until its debt level is more acceptable.
Lower sales for the eon decking system are attributed to transitional issues related to the launch of a new deckboard, while the reduced film sales are due to delays in customer launches for CPI’s new Rubbermaid line of trash bags.
CEO Peter F. Clark expects both decking and film products sales to recover in January.