CURACAO, Netherlands Antilles, Feb. 12 /PRNewswire-FirstCall/ -- Velcro Industries N.V. ("VINV") , holding company of the Velcro companies and the industry leader in hook and loop fasteners, today announced unaudited results for its first quarter ended December 31, 2008.
Sales for the first quarter of fiscal year 2009 were $60,029,000, which was a decrease of 13% from the first quarter of fiscal year 2008. There was an operating loss for the quarter of $1,083,000, compared to an operating profit of $3,871,000 for the first quarter of 2008. The decreases in sales and profit reflect declines in consumer spending, particularly in the North American automotive sector, and adverse global economic conditions.
Investment activities for the first quarter resulted in a loss of $21,578,000, compared to a profit of $5,051,000 for the first quarter of 2008. These results reflect the steep stock market decline during the period, which resulted in the Company recording an additional impairment loss of $20,754,000 on assets in the Company's investment portfolio as of December 31, 2008.
Further results are included in the following unaudited condensed income statement:
VELCRO INDUSTRIES N.V. and Subsidiary Companies UNAUDITED CONSOLIDATED CONDENSED INCOME STATEMENT Three Months Ended December 31, 2008 Quarter Ended December 31, 2008 2007 US$'000 US$'000 (unaudited) (unaudited) Revenue from Sales 60,029 68,738 Operating Expenses (61,112) (64,867) Operating Profit/(Loss) (1,083) 3,871 Interest Income 81 250 Interest Expense (331) (163) Results from Investment Activities (21,578) 5,051 Profit/(Loss) before Income Taxes (22,911) 9,009 Income Tax Expense 1,403 2,090 Profit/(Loss) for the Period Attributable to the Equity Holders of the Company (24,314) 6,919 Average Number of Shares Outstanding During the Period 27,446,115 28,468,082 Basic and Diluted Earnings/(Loss) Per Share (in US$1) (.89) .24 Dividends Per Share (in US$1) .20 .32 About Velcro Industries N.V.
Velcro Industries N.V. is incorporated and domiciled in Curacao, Netherlands Antilles as a Naamloze Vennootschap (public limited liability company) and acts as the holding company of the Velcro companies, which are primarily involved in the manufacturing and sales of VELCRO(R) and TEXACRO(R) brand fasteners, ULTRA-MATE(R) brand hook fasteners, and ONE-WRAP(R) brand straps throughout the world. For more information about Velcro Industries N.V., including annual and quarterly reports, proxy statements and other materials required to be electronically published under Rule 12g3-2(b) of the U.S. Securities Exchange Act of 1934, visit http://www.velcroindustriesnv.com/.
Forward-Looking Statements
This press release and the documents referenced herein may contain "forward-looking" statements and information, which involve risks and uncertainties. Actual future results may differ materially. Statements indicating that VINV "expects," "estimates," "believes," "is planning" or "plans to" are forward-looking, as are other statements concerning future financial results or other events that have not yet occurred. There are several important factors that could cause actual results or events to differ materially from those anticipated by the forward-looking statements.
