Houston, Texas -- Lapolla Industries Inc., a US manufacturer of spray foam insulation and cool roof coating products, has posted second quarter sales of $17.8 million, a 17.9 percent decrease year-on-year, which the company said was due to "industry-wide challenges."
Operating loss for the quarter was $2.1 million, compared with $0.6 million in the second quarter 2011.
The foam segment reported $14.5 million in second quarter sales, a 16.2 percent decrease from the prior year period, while the coatings segment reported $3.3 million in sales, a 24.4% decrease from the prior year period.
"The second quarter presented industry-wide challenges including record high commodity and raw material costs, shortages in availability of materials from a force majeure event, and declining sales," said Douglas Kramer, Lapolla ceo.
Kramer noted that the company has hired a new chief operating officer, Harvey Schnitzer, who will "strengthen the organisation and executive management team regardless of market conditions."
"We are seeing very positive indications mid-way through the third quarter. We believe the swift steps taken to address the rapidly changing market conditions from the second quarter to significantly cut overhead costs, improve margins, and identify new solid growth opportunities, will lead to sustained value," concluded Kramer.