Company expects higher costs to persist short term as it builds inventory and markets new fitting
Omega Flex continues targeted investments to expand capacity and support geographic growth
Company sees potential for MediTrac medical tubing to drive growth in new markets
Overview
US flexible piping maker's Q2 net sales fell 5.8% yr/yr on lower unit volumes
Q2 net income dropped 35.6% yr/yr, mainly due to higher raw material and marketing costs
Company launched new flexible gas piping fitting and received CE mark for MediTrac medical tubing
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
$24.06 mln
Q2 Basic EPS
$0.27
Result Drivers
LOWER UNIT VOLUMES - Co said Q2 net sales decline was mainly due to lower sales unit volumes as the overall market remained suppressed, citing a decline in housing starts
HIGHER COSTS - Co said Q2 net income decline was mainly due to higher raw material costs (including inbound transportation costs and tariffs), marketing efforts, and product enhancement and certification expenses
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