15 November 1999 00:00 [Source: ICB Americas]USA Detergents had an earnings loss of $844,000 in the third quarter despite record sales of $60.7 million, 15 percent higher than during last year's comparable period. Gross profit as a percentage of net sales dropped to 30.6 percent, versus 34 percent in the third quarter of 1998.
The company blames its poor results on high employee turnover and inefficiencies in the startup of four new manufacturing capital projects.
"Although the company had reached record sales for the quarter, the combined effects of inefficiencies and increasing raw material costs negatively impacted the quarter results more than expected," says Uri Evans chairman and CEO. "Management is in the process of addressing these inefficiencies and believes that labor costs and a number of other expense items can be brought back to more normalized levels during the fourth quarter."
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