Hong Kong-based Global-Tech Appliances Inc. said net sales and earnings for the third quarter of fiscal 2003, ended December 31, 2002, were U.S. $16.5 million, compared to $19.5 million for the third quarter of fiscal 2002. In a Business Wire report Global-Tech said net income for the third quarter of fiscal 2003 was $0.8 million, or $0.06 per share, compared to $1.0 million, or $0.09 per share, in the previous year.
Global-Tech produces and markets small household appliances, including kitchen appliances, garment care products, travel products and accessories, and floor care products. Products are marketed by Global-Tech customers under brand names such as Black & Decker(R), DeLonghi(R), Dirt Devil(R), Eureka(R), Hamilton Beach(R), Krups(R), Morphy Richards(R), Mr. Coffee(R), Proctor-Silex(R), Sunbeam(R), and West Bend(R).
Global-Tech said the decline in the quarter's net sales was evenly spread among all its product categories as major retailers lowered expectations for the holiday season and stocked more low-end promotional products. Global-Tech also said one of its major customers lost shelf space to new entrants in the floor care category.
Net sales for the nine months ended December 31, 2002, were $61.4 million, compared to $67.5 million for the previous year. Net income for the first three quarters of fiscal 2003 was $5.3 million, or $0.44 per share, compared to $5.5 million, or $0.46 per share, in the first nine months of fiscal 2002.
As previously announced, Global-Tech executed an agreement to sell the thin film electroluminescent (TFEL) display operation of its subsidiary, Lite Array, Inc., on October 30, 2002. The financial statements reflect the sales and expenses associated with the TFEL display business as a discontinued operation. Lite Array is now totally dedicated to its organic light emitting diode, or OLED, display R&D program, which costs approximately $1.5 million per annum to pursue.
"As previously announced, the overall business environment continues to be soft," commented Global-Tech President and CEO John C.K. Sham. "While simple, small electrical appliances are becoming very price competitive, we believe that our shift in focus to more complex appliances, particularly floor care products, was a positive move that will continue to produce new business opportunities for the company."
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