Holding company Global-Tech Appliances Inc. announced net sales for the second quarter of fiscal 2006 ended Sept. 30, 2005 were U.S. $19.9 million, up 73.6 percent compared to $11.5 million in the same period in 2005. Net loss for the second quarter of fiscal 2006 was $4.4 million compared to a net loss of $3.8 million in the same period in 2005.
Net sales for the 6-month period were $37.6 million, up 76 percent compared to $21.4 million in the 6-month period in 2005. Net loss for the first half was $7.1 million compared to a net loss of $6.5 million in 2005. Fiscal 2006 results reflect impairment and other non-operating charges of approximately $1.3 million more than those incurred in the first half of fiscal 2005.
The company said profit margins were affected by increases in plastic and labor costs.
"As a long-term cost reduction strategy, we have started to relocate some of our daily functions from our Hong Kong office to our facility in Dongguan, China, John C.K. Sham, president and CEO, said. "In addition, we expect to re-engineer and restructure some of our processes as part of our relocation plan. The cost savings of this move should begin to be reflected in the first or second quarters of fiscal 2007."
Mr. Sham concluded, "We are pleased to report that some of our new product initiatives are starting to come to fruition. One of our newly developed products won an innovation prize for the upcoming International Consumer Electronics Show in Las Vegas and our electronic component business is moving along nicely. We expect these new product and business developments to contribute to our overall sales growth in the current fiscal year."
to Daily News