LESCO revises growth estimates downwardLESCO Inc. announced today that since its press release on May 10, 2001, the Company has experienced a deterioration in economic conditions, affecting both the Company's industry and its own sales growth. LESCO's May 10, 2001 statement said that a second quarter sales increase of 10 to 12 percent and a modest increase in earnings over the second quarter of 2000 was anticipated.
Today, with the advantage of actual results for May and preliminary results for June, sales are estimated to increase about 4% over the $158.3 million of last year's second quarter with net income and earnings per share down about 25%, compared with the record $10 million in net income reported for the second quarter of 2000.
"The slow economy has impacted demand throughout the green industry, and we're no exception," said Willaim A. Foley, LESCO's Chairman, President and Chief Executive Officer. "The first half of 2001 has been difficult. We have been impacted by a declining economy, very adverse weather conditions and a 50% increase in the cost of our largest raw material, urea. As a result of marketing programs underway, anticipated lower urea costs and aggressive cost actions taken, we remain optimistic that the second half of 2001 will be a signficant improvement over last year and that we will be able to report increased earnings for the full year."
LESCO anticipates releasing its second quarter results on July 30, 2001 and will host a conference call with investors at 4:00 pm EDT that day. Interested parties may access the call by dialing 800-289-0468 or through a simultaneous Webcast through LESCO's website, http://www.lesco.com.