Sales for the six months ended June 30 were $115.0 million, compared with sales of $108.6 million during the first six months of 2003, an increase of 5.9 percent. Net income for the first six months of 2004 was $900,000, or 11 cents per share, versus a net loss of $4.6 million, or 55 cents per share, in the first six months of 2003.
"We are very pleased with the sales and profitability improvements achieved during the second quarter," said Roger S. Marcus, Congoleum chairman of the board. "Our sales growth came from increased shipments to the manufactured housing industry and the introduction of our new Xclusive sheet product, as well as inventory increases by our largest distributor following decreases in the first quarter.
"Even more encouraging was our bottom-line performance, which reflects the benefit of the cost reduction steps we took last year as well as the improvement in sales," Marcus continued. "We are particularly pleased to have achieved margin improvements despite significant increases in our raw material costs, which more than offset the benefit of our price increase last year." Marcus added that the company remains concerned that raw material increases cost increases will continue to pressure margins for the balance of 2004 but, he added, "we are optimistic about the overall outlook for our operating results this year."