FABRIC
FILTER       NEWSLETTER 

 

August 2006
No. 370

MFRI Reports Record First Quarter Net Sales

MFRI, Inc., a manufacturer of custom-designed industrial filtration products, specialty piping systems and industrial process cooling equipment, announced improved sales, gross profits, operating profits and pre-tax profits for the first quarter ended April 30, 2006, but an unfavorable net income comparison primarily because the startup expenses for its new plant, Perma-Pipe Middle East, FZE, (“PPME”), in the United Arab Emirates (“UAE”) are not deductible when calculating income taxes. When the operations of this new plant become profitable there will be essentially no income tax on those earnings, potentially offsetting this near-term unfavorable impact.

Net sales for the first quarter of 2006 were up in all segments to a record $46,932,000, 30 percent more than the $36,202,000 reported for the prior year’s quarter. The large increase was primarily due to increases in the oil and gas business and improved conditions in the plastic molding and printing markets. Gross margin was 20.9 percent, down from the prior year’s 21.7 percent, but gross profits were a record $9,805,000, up 24.6 percent from the prior year’s $7,867,000. Income before taxes was $659,000 or 1.4 percent of sales up 109.9 percent from the prior year’s $314,000 or 0.9 percent of sales.

 

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