Housewares industry company Home Products International, Inc. (Chicago, IL, U.S,) has announced financial results for its 2003 fiscal year and fourth quarter.
For the fiscal year ended Dec. 27, 2003, the company reported a net loss of U.S. $11.3 million, ($1.42) per diluted share, as compared to net earnings a year ago of $14.3 million, $1.73 per diluted share. Results were impacted by a decline in net sales, increased raw material costs, and tax asset write-offs.
Net sales for the year were $233.6 million, down 6 percent from 2002 net sales of $249.2 million. The net sales decrease was primarily due to reduced sales of low-margin items and selling price decreases. Partially offsetting these negative sales factors were cost decreases related to customer deductions and programs. Such deduction and program expenses, which are recorded as a
reduction of gross sales, were 5.9 percent of gross sales in 2003 and 8.4 percent of gross sales in 2002.
The full-year results include a $15-million increase in raw materials, a $7.6-million increase in the valuation allowance related to deferred tax assets, $1.7 million of costs related to the closing of the company's Eagan, MN, U.S. manufacturing facility, a $2.3-million gain related to buybacks of the company's high-yield bonds and $1.2 million of income from a change in estimate related to prior years' restructuring actions.
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