Lilly Industries Reports Record Quarterly Sales and Net Income

Strategic Insights -

Lilly Industries, a leading manufacturer of industrial coatings and specialty chemical products, has achieved record quarterly sales of $176.4 million for the second quarter ended May 31, 2000, representing a 3% increase over the same period last year. The company's net income for the quarter was $9.1 million, compared to $9.6 million in the prior year. Despite the strong sales growth, operating profit margins declined due to rising raw material costs, increased manufacturing expenses, and higher selling expenses. The company's strong demand for wood coatings and powder coatings in the Asia-Pacific region and fabric protection business due to new retailer programs contributed to the sales growth.

Key Takeaways:

  • Lilly Industries reported all-time record quarterly sales of $176.4 million for the second quarter ended May 31, 2000, a 3% increase over the prior year's same quarter.
  • Second quarter 2000 net income was $9.1 million compared to $9.6 million for last year.
  • Diluted net income per share was $.39 compared to $.41 last year.
  • Sales for the six months ended May 31, 2000 increased 6% to $337.4 million compared to $317.5 million for the same period last year.
  • Net income for the first half of fiscal year 2000 was $13.6 million compared to $15.2 million last year.
  • Diluted net income per share was $.59 compared to $.65 last year.
  • Demand was strong for wood coatings in the Asia-Pacific region and powder coatings.
  • The fabric protection business was strong due to new retailer programs and further market penetration.
  • Operating profit margins declined due to escalating prices of petroleum-based raw materials, increased manufacturing costs associated with new facility start-ups, and higher selling expenses.
  • The company supplies customers worldwide from over 50 plants and sales offices located in North America, Europe, Asia, and Australia.

Statistics:

  • Record quarterly sales: $176.4 million
  • Sales growth: 3% over prior year's same quarter
  • Second quarter net income: $9.1 million
  • Diluted net income per share: $.39
  • Six months sales growth: 6%
  • Net income for the first half of fiscal year 2000: $13.6 million
  • Diluted net income per share: $.59

Sources:

  • Business Wire, June 29, 2000
  • Lilly Industries press release, June 29, 2000