STRONGSVILLE, Ohio – Despite posting fourth-quarter and full-year 2001 sales increases of 2 percent and 1 percent respectively, LESCO today announced net losses in both categories.
“For LESCO and for our entire industry, 2001 was a difficult and challenging year,” explained William A. Foley, chairman and chief executive officer. “We are pleased with our working capital management, debt reduction and sales performance, but our operating and net income results are unacceptable.
“We are committed to regaining our earnings momentum, and are taking the necessary steps to return to profitability,” Foley continued.
Sales in the fourth quarter were $105.3 million, up from $102.8 million in the fourth quarter of 2000. The company reported a loss for the 2001 fourth quarter of $5.2 million, compared with a $5.6 million loss during the same period of 2000.
Foley pointed to the downturn in golf resort business and lawn care product sales following the Sept. 11 attacks as factors that resulted in sluggish sales in the fourth quarter.
Sales for the full year were $504.3 million, up just 1 percent from the $499.6 million reported in 2000. The net loss in 2001 was $2.9 million compared with a loss of $7.4 million in 2000. The company explained that these results were negatively impacted by several factors, including adverse weather conditions, intense price competition, and the rising cost of raw materials.
As of Feb. 25, LESCO’s stock was trading at $7.15 per share, compared with a 52-week low of $6.10.