Early season decking sales eclipse poor 2003 results
Canadian PlasticsCanadian Plastics
2003 was a disappointing year for CPI Plastics Group (Mississauga, ON). As the custom profile extruder continued it...
2003 was a disappointing year for CPI Plastics Group (Mississauga, ON). As the custom profile extruder continued its transformation consumer products manufacturer, it was beset by higher material costs, distribution channel hiccups and engineering delays. But the first quarter of 2004 showed strong indications of a better year to come.
"We are becoming a significant consumer products company," said executive vice-president Daniel Ardila, as he presented CPI Plastics’ annual results to shareholders during a ceremony at the company’s new plant in Mississauga, ON. "As such, our success can be influenced by channel partners, and we have significant marketing and promotion costs."
CPI’s net sales for 2003 were $144 millon, generating earnings of $4.4 million. Sales were higher than the $130 million recorded for 2002, but Ardila said there was little organic sales growth.
The outlook for CPI’s eon decking products is promising. Ardila says in early May year-to-date orders for eon were 173% higher than year-to-date sales in the previous year. A line of fencing products to complement eon decking will be launched this year.
Another positive note emerges from CPI’s spa cladding business. That segment showed solid growth in 2003, achieving net sales of $29 million compared with $22.5 million in 2002.