Louis LeCalsey, Tufco president and CEO said, “Both Tufco’s contract manufacturing and business imaging operations experienced an extremely challenging economic environment throughout fiscal year 2009 as a weak consumer economy resulted in decreased demand for our customers’ products.”
“In contract manufacturing, Tufco reacted to this decline by cutting operating costs and adding a number of new wipes customers. As a result of these actions, in the second half of our fiscal year 2009, contact manufacturing operating profit improved over the first half of 2009 operating results.
“Looking ahead to fiscal year 2010 for Contract Manufacturing, Tufco has begun commercial operations on a new canister wipes line but does not expect any significant rebound in our existing flat pack wipes business before the second half of fiscal year 2010.
“The amount of sales and earnings increases in fiscal 2010 will depend on the speed and extent of the consumer market recovery and increases in discretionary purchases of branded wipes,” said Mr. LeCalsey. “Our Business Imaging operation was likewise hard hit in fiscal year 2009 by the recession and very competitive industry pricing. As a result of expense reductions and the addition of new customers, Business Imaging showed improvements in sales and operating income during the last six months of fiscal year 2009 as compared to the first six months of fiscal year 2009. Further increases in sales and operating income in fiscal year 2010 will depend on increased consumer spending.”