Great Lakes Reports Strong Growth in Third Quarter Sales and Earnings

25-Oct-2002

Great Lakes Chemical Corporation announced third quarter 2002 net sales from continuing operations of $360.6 million, a 12% increase, compared to $321.0 million reported in the corresponding period last year. Operating income from continuing operations for the third quarter rose to $29.7 million from $4.2 million last year. All business segments reported improvement in sales and operating income for the third quarter versus last year.

The company reported third quarter income from continuing operations of $13.7 million, or $.27 per share, compared to a $(98.3) million loss, or $(1.95) per share, for the third quarter last year. Excluding special charges and one-time items in both periods, income from continuing operations amounted to $12.8 million, or $.25 per share, compared to a $(6.8) million loss, or $(.13) per share, for the third quarter last year. Including discontinued operations, Great Lakes' reported net income for the third quarter of $13.0 million, or $.25 per share, compared to a reported net loss of $(106.6) million, or $(2.12) per share, for the same period last year.

"Higher sales, all organic, combined with productivity gains allowed us to deliver significant improvement in operating earnings this quarter compared to last year," said Mark Bulriss, Great Lakes' chairman, president and chief executive officer. "This performance reflects our continuing efforts to pursue profitable growth, improve our operating efficiencies and provide innovative solutions to our customers. In fact, we are on track to finish the year with a 25% increase in new product sales."

He added," Our focus on fortifying our already strong balance sheet was clearly evident this quarter. With free cash flow of approximately $60 million, Great Lakes successfully lowered its net debt to capital to 22%, which is 18 percentage points lower than a year ago and the lowest it has been in three years."

Bulriss concluded, "It is critical we stay focused during this uncertain economic climate. While we are intent on reducing costs, we remain committed to the continuous improvement of our business processes. By accelerating best practices across the entire company we fuel organic growth, improve productivity and manage our assets more effectively. These initiatives are key to positioning Great Lakes for a strong future."

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