Houston, Texas – Lapolla Industries, a supplier and manufacturer of products including spray PU foam insulation saw gross profit increase 26.9% to $6.1m in the third quarter of 2016 compared with the same quarter of 2015.
Sales in the company's foam division were also 8.8% higher at $17.7m in the quarter compared with $16.3m in the 2015 quarter. Lapolla said: "Foam sales increased $1.4m primarily due to higher demand for our foams, which we believe is attributable to cost-conscious residential and commercial building owners transitioning from traditional fibreglass insulation to energy efficient spray polyurethane foam."
This increase in sales contributed an additional $176,000 to the gross profit number, said Lapolla, which added that the major contribution was a decrease of $1.1m in purchased feedstock, freight manufacturing costs as well as operational efficiencies compared with the year earlier period.
For the first nine months of the 2016 financial year foam sales were $52m compared with $47m in the first nine months of 2015, up 9.8%
