Del Laboratories, Inc., Reports First Quarter Results

Uniondale, NY-based Del Laboratories, Inc. reported net sales for the first quarter ended March 31 were $83 million, down 11% compared to first quarter 2003. Executives attributed the decrease to production start-up problems in connection with the transfer of manufacturing operations from Farmingdale, NY, to Rocky Point, NC, which adversely impacted order fulfillment.

Executives said the production issues are being addressed and it is anticipated that during the second quarter, production efficiencies and order fulfillment will approach pre-relocation levels. Net earnings for the first quarter of 2004 were $680,000, compared to $4,325,000 in the first quarter of 2003, due to the lower sales volume.

Core brand continued to perform well, insisted Dan K. Wassong, chairman, president and chief executive officer. “In our cosmetics business, Sally Hansen remains the No. 1 brand in the mass market nail care category with a 25.6% share of market for the first quarter, as reported by ACNielsen,” he said. “In our over-the-counter pharmaceuticals business, Orajel continues its leading position in the oral analgesics category with a 24.7% share of market for the first quarter, as reported by Information Resources, Inc.