Applica Incorporated, a maker of small appliances, announced that fourth-quarter sales for 2004 were U.S. $247.5 million, an increase of 18.4 percent from the same period in 2003. For the full year ended Dec. 31, 2004, sales were $726.7 million, an increase of 13.4 percent over 2003. The increases in sales in the fourth quarter and full year periods resulted primarily from sales of new and core products under the Black & Decker(R) brand, partially offset by a decline in contract manufacturing sales.
Applica reported net income for the fourth quarter of 2004 of $5.3 million, or $0.22 per diluted share, compared with a net loss of $6.5 million, or $0.27 per diluted share, for the 2003 fourth quarter. For the year, Applica reported a net loss of $133 million, or $5.55 per diluted share, as compared to net income of $15.2 million, or $0.63 per diluted share, for the same period in 2003.
Applica's gross profit margin decreased to 27.9 percent in the three-month period ended Dec. 31, 2004 as compared to 28.6 percent for the same period in 2003. Gross margins in the fourth quarter of 2004 were negatively impacted by restructuring costs relating to the continued downsizing of the Mexican manufacturing operations; and lower-than-expected sales and higher-than-expected costs for the Tide(R) Buzz(R) Ultrasonic Stain Remover. For the full year, the gross profit margin increased slightly to 29 percent as compared to 28.9 percent for the same period in 2003.
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