CPI Plastics reports weak Q2 sales

Mississauga, Ont.-based CPI Plastics Group Ltd. has reported slow sales for the second quarter of 2007, citing a limp housing and building products sector in the U.S. The processor reported sales of $31.5 million in the second quarter of 2007, down by nearly 28 per cent from $43.8 million in the second quarter of 2006.

The company’s sales have been lower for the entirety of 2007, with a 24.6 per cent decline in sales for the first six months of 2007. CPI reported consolidated net sales of $62.3 million for the first half of 2006, compared to $82.5 million during the same time period last year.

“The ongoing weakness in the U.S. economy, and depressed housing markets, has had a significant negative effect on the entire building products sector as well as consumer spending for home improvements and ‘high ticket’ discretionary items,” said the company in its announcement of second quarter results.

Although sales were lower across the company’s business segments, the company’s outdoor living products segment saw the biggest decline. The extruder manufacturer, which is perhaps best known for its Eon Outdoor line of products, reported sales of only $14.4 million in the segment. Sales of outdoor living products were down by nearly 36 per cent from 2006.