| UPDATE - July 30, 2001: LESCO Reports Second-Quarter Results |
CLEVELAND - LESCO, Inc. reported record sales of $164.1 million for the quarter ended June 30, 2001, an increase of 3.7 percent compared to the $158.3 million achieved in the 2000 second quarter. Net income for the quarter was $7.5 million, or $0.88 per diluted share, lower than the record $10.0 million or $1.16 per diluted share, reported in the second quarter of 2000. Sales for the six months ended June 30, 2001, were $254.9 million, down 0.9 percent from the $257.2 million reported in the first half of 2000. Net income for the 2001 first half was $1.9 million or $0.23 per diluted share, compared with $8.8 million or $1.02 per diluted share for the comparable 2000 period. |
CLEVELAND - Professional lawn care product supplier LESCO Inc. announced July 13, 2001, that it has experienced a deterioration in economic conditions since its May 10 prediction of a 10 to 12 percent increase in sales for the 2001 second quarter compared to the same period in 2000. As a result of slower demand for the company’s products, LESCO also announced a temporary layoff of 12 percent of its workforce.
The company has lowered sales expectations for the 2001 second quarter to a 4 percent gain compared to last year’s sales of $158.3 million for the same period and has also predicted a 25 percent drop in net income and earnings per share compared to the record quarter last year that showed $10 million in net income and $1.16 per diluted share.
"The slow economy has impacted demand throughout the green industry, and we're no exception," said William Foley, LESCO's chairman, president and CEO. He explained that the temporary layoffs at certain LESCO plants are aimed at lowering costs and reducing inventories and will impact about 12 percent of the company’s production workforce. "In addition, significant other measures have been implemented to reduce freight expense, as well as selling, general and administrative costs," Foley continued.
"The first half of 2001 has been difficult. We have been impacted by a declining economy, very adverse weather conditions and a 50 percent increase in the cost of our largest raw material, urea," Foley noted. However, Foley remains optimistic for the second half of 2001 to show improvement over last year and for the company to show increased earnings for the full year based on current marketing programs, anticipated lower urea costs and cost cutting actions.
LESCO anticipates releasing its second quarter results on July 30, 2001.
For more information about LESCO visit www.lesco.com.