Houston, Texas -- Lapolla Industries has reported a 30 percent increase of sales in the second quarter of 2011, up to $5 million, the spray foam insulation maker said in a 19 Aug statement.
Gross profit decreased $225 821, or 5.3 percent, in the second quarter of 2011, which Lapolla said was due to the 47.1 percent increase in freight costs and 6.9 percent increase in material costs, offset by the increase in sales.
Foam sales were $2.8 million, up 20 percent from the second quarter of 2010. Lapolla attributed this increase to "continued market penetration and higher consumer demand" due to building owners moving from traditional fibreglass insulation to SPF insulation. Gross profit for foam decreased by 9.5 percent and the profit margin was down by 6.3 percent compared to the second quarter of 2010.
Coatings sales soared by 96 percent, reaching $2.1 million. Coatings gross profit was up 21 percent year-on-year, while the profit margin decreased by 10 percent due to higher freight costs, the company said.
"We continued to experience commodity cost challenges during the quarter from volatile oil prices and global allocation of certain coating materials. From all indications, it appears the short term spike in materials pricing is stabilising and in some cases reversing, while market softness persists," said Douglas Kramer, Lapolla ceo.
He added that the company was experiencing sustained growing demand as it entered the third quarter.