Sico Inc., Canada’s leading paint and coating manufacturer, has reported that for the quarter ended March 26, sales were $63.6 million, a seven percent increase over the $59.4 million it tallied in the same period one year ago.
The company’s architectural coatings unit sales rose 10.9% to $54.1 million. Officials said that Para Paint’s contribution in this unit was partially offset by a drop in private-label paint sales resulting from inventory adjustments at some major retail customers.
Architectural EBITDA rose 16% to $7.8 million, driven mainly by Para’s contribution and the impact of an infrastructure optimization program started in the second half of 2003.
“The architectural sector progressed significantly towards achieving its two main objectives for 2004—to fully support the Sico and Para brand development and to improve profitability,” said Pierre Dufresne, president and CEO, Sico. “During the first months of 2003, we completed the integration and consolidation of sales and customer service in this architectural sector, whereas our operational optimization program has already translated into higher profit margins,” he added.
Sico’s industrial sector sales dropped 10.8% to $9.5 million, after the sector posted “exceptional” sales growth in the same quarter one year ago. Company officials attributed the decline in part to the weaker U.S dollar in relation to the Canadian dollar.
“Our architectural sector will keep on building the Sico and Para brands and their distribution networks nation-wide fueled by a generally favorable Canadian economy, expansion projects undertaken by certain customers and a more flexible and efficient operational structure,” said Dufresne. “As for the industrial sector, it will further improve its profitability and fine-tune its business plan in keeping with its main growth avenue