• Devcon Reports Modest First Quarter Net Income
Devcon International Corp. reported net income for the first quarter ended March 31, 2001 of $49,000 or one cent per basic and diluted share compared with $15.7 million or $3.94 per basic share ($3.66 diluted) for the first quarter last year. The year-ago figures reflect pretax gains on asset sales of approximately $18 million.First quarter revenues were $13.2 million compared with revenues of $15.7 million in the corresponding three months of the prior year. Revenues were lower due primarily to the sale of the company's Dominica operations and to the March 1 termination of a cement distribution agreement.
Donald L. Smith, Jr., chairman and president of Devcon, said, "Aggregates sales volume was up more than 18% in the quarter as we continue to focus our materials business on our quarries. This improvement in aggregates volume offset softness in concrete and concrete block volume.
"Our construction division continues to do well and we completed major jobs on St. Croix and Antigua. However, work is beginning on new contracts in May."
He pointed out that first quarter results reflect interest income on the restructured notes from the government of Antigua and Barbuda. As a result of the ongoing payments from the Antiguan government and the asset sales a year ago, Devcon enjoys a strong cash position after paying off approximately $19 million in equipment financing and other debt last year.
