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Airspray Reports Accelerated Sales in 2005 First Half

October 21, 2005

Airspray International realized strong growth during the first half of 2005. Total volume increased 41%, resulting in sales revenue growing 25% to $21.1 million. Gross margin declined from 37% during full year 2004 to 35% in the first half of 2005 due to raw material cost increases, exchange rates differences, volume discounts and, in particular, product mix effects.
Volume was buoyant in existing segments such as hand soap and reflected the new entry into the household segment. North America accounted for 58% of the turnover, Europe 37% and other 5%. Operational expenses increased 11%, which was lower than the sales growth. The company estimates a 20% increase in revenues and profits for 2005.
Airspray is expanding its operations to include the molding of parts. In Florida, it’s increasing the size of operations to 24,000 square feet, a 50% increase, and adding 16 staff. The expansion starts in January.
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