JPS Industries says weak demand affected Q3 results

By Liz White, UT staffGreenville, South Carolina-JPS Industries Inc., whose Stevens Urethane subsidiary makes extruded urethanes, reported net income of $1.0 million on sales of $42.4 million for the third quarter of fiscal 2005. This compares with a net income of $1.3 million on sales of $42.0 million in the same quarter last year.For the first nine months, the firm reported net income of $3.0 million on sales of $117.5 million, compared with a net income of $2.0 million on sales of $111.4 million for the same period in 2004.The third quarter was in line with JPS' expectations, though slightly below last year, said Michael Fulbright, JPS' chairman, president and chief executive officer, in a company statement. Pointing out that the results "reflect a number of variables within our businesses," Fulbright added: "We were successful in implementing price increases throughout the company to cover the raw material increases we had experienced during the first six months of our fiscal year." But weak demand in several markets-electronics, commercial and military aircraft, and other defence-related markets-"affected our JPS Composite Materials and Stevens Urethane businesses," he continued. Strong areas included the Stevens Roofing business and other industrial markets that are serviced by the Stevens Urethane and JPS Composite Materials products, Fulbright commented. JPS' Stevens Urethane business manufactures thermoplastic polyurethane film, sheet and tubing which it says can be custom formulated for demanding applications. The supplier claims to be "the only company in the world to offer urethane in blown film, extruded sheet, tubing, cord, and profile form." The Stevens Roofing business makes offers weldable roofing membranes from various thermoplastic materials or Hypalon elastomer, with insulation options including polyisocyanurate and expanded or extruded polystyrene. For the next months, Fulbright said he expect the markets listed as weak to strengthen somewhat, but said "while raw material cost plateaued in third quarter," the effect of oil prices and energy-related costs is not easy to predict. The portable kayak pictured uses sheeting from Stevens Urethane."