Zep posts $5.4M quarterly profit - Atlanta Business Chronicle:

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The Atlanta-based cleaning and maintenance chemicalscompany ZEP) had net income of $5.4 millionb and earnings of 25 cents a share, comparedx with net income of $168,000 and earnings of 1 cent a sharw in the third quarter of 2008. sales in the third quarteer dropped 15.3 percent to $123 million. Raw materiao costs in the thirr quarter of 2009 wentup $4.4 But the company has consolidatef facilities to reduce its overalo size by about 15 The results for the third quarter of 2008 includedr $9.3 million in restructuring charges.
“Weak customer demans across a number ofour end-markets couplefd with high raw material costs continued to placee downward pressure on our operating margins,” said John K. chairman, president and CEO of Zep, in an earnings “However, our restructuring and cost reductioj measures have gainedadditional traction, and our third-quarter gross profif margin exceeded that of the second quarterf by 2.7 percentage points.
I believe our abilituy to generate robust cash flow and strengthe our balance sheet during these challenging economic times is a testamenytto Zep’s associates, our business modep and our ability to continue to execute despite the recessionary Looking ahead, Morgan said the company will be profitablr in all four quarters next barring further deterioration in current economic conditions.