Material Services 3Q sales rise 12.9 percent

ELK GROVE VILLAGE — Material Sciences Corporation reported net sales for the fiscal 2012 third quarter increased 12.9 percent, buoyed by strong demand in auto parts segment and for its ElectroBrite stainless steel alternative product.

Net sales were $34 million, up from $30.1 million for the same period last year, the company said. Net income for the fiscal 2012 third quarter increased 118 percent to $3.7 million, compared with $1.7 million in the prior-year period.

“The strategies we created to improve our cost structure and streamline our operations are paying off,” said Clifford Nastas, Material Sciences’ Chief Executive Officer. “Higher coated material product sales enhanced our overall sales during the quarter offsetting a decline in acoustical product sales. The $0.8 million increase in ElectroBrite sales during the quarter further demonstrates the market’s acceptance of this highly innovative product, and I am encouraged with its future potential as well as other new products we are currently developing.”

Sales of the company’s coated materials for the quarter increased 41 percent to $17.5 million, from $12.4 million for last year’s third quarter. The company said the increase was due to strong demand for automotive electrogalvanized products, as well as ElectroBrite, a stainless steel alternative for the appliance market. These increases were partially offset by a decrease in fuel tank sales to the Ford Motor Company.

Gross profit, as a percentage of fiscal 2012 third quarter sales, improved to 27.4 percent, from 22.5 percent for the third quarter last year. The significant improvement in fiscal 2012 third-quarter gross margin was mainly the result of higher sales, an improved product mix and stronger facility utilization driven by higher electrogalvanized volume.