CPAC Inc.'s third-quarter loss nearly tripled as losses from the the Leicester-based specialty chemical maker's Fuller Brands business offset improved earnings from its imaging chemicals unit.
CPAC's loss widened to $260,172, or 5 cents per share, from $87,003, or 2 cents per share, a year earlier as losses narrowed from its Fuller Brands business, while operating earnings more than doubled from its imaging chemicals unit.
CPAC's loss also was affected by $319,000 in corporate expenses, which was up significantly from a year ago as the company worked on several "consulting projects and strategic initiatives."
The company's sales dipped by 3 percent to $19.8 million during the quarter that ended on Dec. 31, compared with $20.4 million a year ago.
The company's Fuller Brands business narrowed its operating loss to $353,088 from $449,665 a year ago as higher raw material and freight costs were only partially recovered through price increases that are being phased in.
Fuller Brands' sales fell by 6 percent to $10.8 million from $11.5 million a year ago as one major customer eliminated the need for brush components in its reengineered product, while another private-label brush account switched to an offshore supplier.
The company's cleaning technologies group had flat sales, while revenues from its Stanley Home Products business grew by 1 percent.
CPAC's imaging chemicals business strengthened, despite the growth of digital photography, as export sales grew. The imaging chemicals segment earned $536,703 during the quarter, more than double its operating profit of $264,525 a year ago.
Sales rose 1 percent to $9 million from $8.9 million as international sales grew by 5 percent.