CURACAO, Netherlands Antilles, May 14 /PRNewswire-FirstCall/ -- Velcro Industries N.V. ("VINV") (Nasdaq: VELC), holding company of the Velcro companies and the industry leader in hook and loop fasteners, today announced unaudited results for its second quarter ended March 31, 2009.
Sales for the first six months of fiscal year 2009 were $121,380,000, which was a 17% decrease from 2008. Sales for the second quarter were $61,351,000, which was a decrease of 20% from the comparable period last year. There was an operating loss for the six months of $1,894,000, compared to an operating profit of $10,536,000 for the comparable period last year. For the quarter, there was an operating loss of $811,000, compared to a profit of $6,665,000, for the second quarter of 2008. The declines in sales and operating profits during the second quarter and for the first six months reflect ongoing adverse global economic conditions, particularly with regard to consumer spending and the North American automotive business.
Investment activities for the first six months of fiscal year 2009 resulted in a loss of $26,140,000, compared to $5,393,000 of investment income for the first six months of last year. The investment loss for the second quarter was $4,562,000, compared to $342,000 of investment income for the second quarter of last year. These results reflect the steep stock market decline during the first six months of fiscal year 2009. This decline resulted in the Company recording additional impairment losses of $20,754,000 and $2,797,000 during the first and second quarters, respectively, on assets held in the Company's investment portfolio.
Further results are included in the following unaudited consolidated condensed income statement:
VELCRO INDUSTRIES N.V. and Subsidiary Companies
UNAUDITED CONSOLIDATED CONDENSED INCOME STATEMENT
Six Months Ended March 31, 2009
Quarter Ended Six Months Ended
March 31 March 31
2009 2008 2009 2008
------- ------- ------- -------
US$'000 US$'000 US$'000 US$'000
Revenue from Sales 61,351 76,714 121,380 145,452
Operating Expenses (62,162) (70,049) (123,274) (134,916)
------- ------- -------- --------
Operating Profit/(Loss) (811) 6,665 (1,894) 10,536
Interest Income 31 148 112 398
Interest Expense (276) (222) (607) (385)
Results from Investment
Activities (4,562) 342 (26,140) 5,393
------ ---- ------- -----
Profit/(Loss) before Income
Taxes (5,618) 6,933 (28,529) 15,942
Income Tax Expense 298 2,623 1,701 4,713
------- ----- -------- -----
Profit/(Loss) for the Period
Attributable to the Equity
Holders of the Company (5,916) 4,310 (30,230) 11,229
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Average Number of Shares
Outstanding during the
Period 27,162,558 27,446,115 27,307,386 27,959,891
Basic and Diluted Earnings/
(Loss) Per Share (in US$1) (.22) .16 (1.11) .40
Dividends Per Share
(in US$1) --- --- .20 .32
About Velcro Industries N.V.
Velcro Industries N.V. (NASDAQ: VELC) is incorporated and domiciled in Curacao, Netherlands Antilles as a Naamloze Vennootschap (public limited liability company) and acts as the holding company of the Velcro companies, which are primarily involved in the manufacturing and sales of VELCRO(R) and TEXACRO(R) brand fasteners, ULTRA-MATE(R) brand hook fasteners, and ONE-WRAP(R) brand straps throughout the world. For more information about Velcro Industries N.V., including annual and quarterly reports, proxy statements and other materials required to be electronically published under Rule 12g3-2(b) of the U.S. Securities Exchange Act of 1934, visit www.velcroindustriesnv.com.
Forward-Looking Statements
This press release and the documents referenced herein may contain "forward-looking" statements and information, which involve risks and uncertainties. Actual future results may differ materially. Statements indicating that VINV "expects," "estimates," "believes," "is planning" or "plans to" are forward-looking, as are other statements concerning future financial results or other events that have not yet occurred. There are several important factors that could cause actual results or events to differ materially from those anticipated by the forward-looking statements.
