Gross margin as a percent of sales for the quarter and year ended March 30, 2008 were 17.1% and 21.2%, respectively, compared with 20.8% and 23.2% in the comparable periods a year ago. In addition to the effect of the LIFO adjustments mentioned above, margins for fiscal 2008 were negatively affected by rising commodity chemicals prices and continued growth in high volume, lower margin products.
The positive impact of higher sales on net income for fiscal 2008 was partially offset by an increase in Selling, General and Administrative (SG&A) expenses. The SG&A expense increase primarily related to the acquisition of Trumark and higher employee-related expenses, partially offset by a decrease in professional and consulting expenses.
Chief Executive Officer, John R. Hawkins, commented, "We continue to operate in a highly competitive, price pressured environment where increasing raw material and transportation costs are negatively impacting margins. Our historical focus on strong customer service has permitted us to meet customer needs despite these challenges. The business also continues to generate strong cash flow. This has enabled Hawkins to invest capital in operations, business processes and new growth opportunities while continuing to pay higher shareholder dividends. For example in January 2008, two new Water Treatment sales and service offices were established in Missouri and Kansas, further expanding Hawkins' territory."
Hawkins, Inc. provides a full range of bulk industrial products complemented with the technical competence and innovation to formulate and blend specialty chemicals. The Company sells and services related products and equipment to safely dispense chemicals in highly controlled environments.
Hawkins serves customers in a wide range of industries, including
chemical processing, electronics, energy, environmental services, food
processing, metal finishing, pharmaceutical, medical devices, pul
|SOURCE Hawkins, Inc.|
Copyright©2008 PR Newswire.
All rights reserved