Material Sciences Corporation (OTCBB: MASC), a leading provider of material-based solutions for acoustical and coated applications, today announced results for its second quarter ended August 31, 2009.Net sales for the most recent quarter, at $31.1 million, were 45 percent lower than the $56.8 million reported a year ago. The $3.6 million net loss for latest three months, equal to $0.28 per common share, increased from the loss of $1.3 million, equal to $0.09 per common share, at this time last year.
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"With our two major markets not expected to show much positive change until 2010, we improved our near-term results by increasing Material Sciences' operating efficiency, and effectively managing all expenditures and the balance sheet," explained Clifford D. Nastas, chief executive officer. "The progress we are making is apparent by looking at our last three quarters. Gross margin went from a negative 9.9 percent in the fourth quarter to a positive 9.7 percent in the second. Selling, general and administrative expenses decreased 36.8 percent during this period. And our quarterly loss per share went from $1.87 in the fourth quarter, which included one-time charges, to the $0.28 we just reported. While we're not happy with these results -- and are striving to improve our near- and long-term outlook -- they are good indicators of the progress we are making."
Acoustical materials sales -- primarily from automotive manufacturers -- were $14.0 million in the quarter, down 45.4 percent from $25.7 million at this time last year. Significantly lower automobile production in North America, associated with a soft economy and OEM bankruptcies, reduced demand for nearly all of the company's acoustical applications, including body panels, engines and brakes.
Sales of coated materials -- primarily purchased by automotive, building products and appliance customers -- were down by 45.1 percent to $17.1 million from $31.1 million in the year-ago quarter. Much of the reduction reflected softer automotive and building markets, and sales of appliance-related products were flat between the two periods. Gross profit for the quarter was $3.0 million, down 50.1 percent from $6.1 million at this time last year. This put the gross margin at 9.7 percent of sales for the latest period, versus 10.7 percent for the prior quarter. Most of the reduction came from lower sales this year, and a decrease in scrap metal sales, which negatively affected gross margins by $4.0 million. Reductions in the cost of non-conformance, materials costs, and operating expenses added back $3.1 million to gross profit.
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