The decline in net sales was attributed to production start-up problems in connection with the transfer of manufacturing operations from Farming-dale, NY to Rocky Point, North Carolina, which adversely impacted order fulfillment, according to executives. Net earnings for the first quarter of 2004 were $680,000, or $0.07 per basic share, compared to net earnings of $4.3 million, or $0.45 per basic share in the first quarter of 2003.
Company executives said the production issues are being addressed and the company anticipates that during the second quarter, production efficiencies and order fulfillment will approach pre-relocation levels.
“We are in the process of resolving the issues and expect improvements during the current quarter,” said Dan K. Wassong, chairman, president and chief executive officer, Del Laborato-ries. “We look forward to the improved operating efficiencies and cost savings the consolidation of our principal manufacturing operations with our distribution facility should generate as the year progresses.”