PFB Corporation (PFB), a Canada based manufacturer of insulating building products, has reported consolidated sales of $79.8 million for the year 2008, down 3.8%, compared with the consolidated sales of $82.9 million in the previous year-end. It posted a consolidated net income of $700,000, or $0.11 per share, for the year 2008, compared with the consolidated net income of $3.4 million, or $0.61 per share, in the previous year-end.
Results for the Three Month Period:
A consolidated loss for the three month period ended December 31, 2008, was $437,000, basic earnings of $0.06 per share, compared to net income of $1,080,000, basic earnings of $0.16 per share reported in the comparative three months of 2007. Consolidated sales for the fourth quarter of 2008 were $18,974,000, a decrease of $1,182,000 or down 5.8% compared to sales of $20,156,000 reported in the comparative quarter of 2007.
The risk scenario in our business environment continues to evolve. A significant risk is our ability to maintain growth of revenues and manufacturing volumes during the current recession. The company has taken action to reduce its costs to support profitable operations. All current major capital spending projects have been completed on budget and no major projects are contemplated at this time.
The exceptional run-up in prices for crude oil and refined products during 2008 had the effect of progressively squeezing manufacturing margins below normal levels throughout the year. As a result 2008 net income was adversely affected by the margin squeeze, particularly during the fourth quarter when the company experienced operating losses.