Royal Group posts net loss in Q1 2006
Woodbridge, Ont.-based polymer processor and extruder Royal Group Technologies (RGT) Ltd., achieved net sales of $...
Woodbridge, Ont.-based polymer processor and extruder Royal Group Technologies (RGT) Ltd., achieved net sales of $338.1 million for the first quarter of 2006, up from $336.7 million in the same period in 2005, and yet posted a first-quarter 2006 net loss of $19.6 million, the company announced.
According to RGT, the first-quarter 2006 sales increase mainly reflects the benefits of rising prices in late 2005 and early 2006.
Excluding unusual costs, the company also reduced its operating expenses to $78.7 million in the first quarter 2006, compared with $81.1 million in the 2005 period, and in addition realized a $7.8 million net gain from the disposal of 550,000 square feet of real estate.
Despite this, the company’s net loss, including discontinued operations for the 2006 first quarter, was $19.6 million, compared with a loss of $11.4 million in the 2005 period.
“Our first-quarter financial results are not yet reflective of the progress we are making with implementation of (our) management improvement plan,” Lawrence J. Blanford, RGT’s president and CEO, said. “Royal Group remains a company undergoing a major transition in virtually every aspect of its operations and that is dealing with unusual costs resulting from past practices,” he added.
The Ontario Securities Commission (OSC) is seeking to prevent insiders of RGT, including Blanford, from trading company stock after it failed to file its 2005 financial statements on time.
RGT is also facing criminal and regulatory investigations in Canada and an investigation by the U.S. Securities and Exchange Commission (SEC).
In addition, RGT recently signed a letter of intent to acquire Greenwood, S.C.-based Tech-Wood USA, the owner of a unique technology used for manufacturing wood-plastics composite decking, fencing and railing products.