Houston, Texas -- LaPolla Industries Inc., a maker and distributor of insulation foams and coating products for the construction sector, had "unprecedented sales growth" in 2008, according to a recent announcement from the firm. LaPolla is also expecting sales „to continue to grow to record levels in 2009.
"This outlook is based on market-share increases in the construction insulation markets which are driven by growing consumer awareness about energy efficient foams and coatings," the firm explained in an April 15 statement.
Sales were up 49 percent, to $47.6 million in 2008 while gross profit soared 86 percent, to $4.2 million on the back of this substantial sales growth, according to a 15 April announcement from the firm. Lapolla added that its operating loss decreased to $3.5 million in 2008, 30 percent down from the loss in 2007.
"LaPolla had unprecedented sales growth, a full year of manufacturing its own in-house foam resins, attained essential industry approvals, credentials and certifications for its own products, and integrated AirTight's equipment, distribution and training programmes during 2008,‰ said Douglas Kramer, the firm's ceo and president.
Nevertheless, "we were not able to fully optimise this value in 2008 as a result of an extraordinary spike in petroleum related raw material costs," he explained.
"LaPolla is now positioned to bring the full value to our bottom line in 2009 and beyond," Kramer concluded.
Key to the improvements were an 80-percent increase in foam sales, to $37.3 million in 2008, "as energy-conscious building owners and consumers continued to seek relief from volatile energy prices and polyurethane spray foam (SPF) continues to gain market share from traditional insulation systems such as fibreglass," the firm's statement explained.
LaPolla bought the AirTight company, a training, start-up and rig building operations provider, which furthered its market penetration in the foam segment. "By providing new market entrants as well as existing insulation companies with the equipment and training to successfully market foam, revenue growth from equipment has escalated and the ongoing sales of LaPolla foam has followed," the firm'‚s statement added.