SAVAGE, Minn. (Aug. 15) — Continuing its long-term turnaround plan, tire recycler GreenMan Technologies Inc. has reported its first profitable quarter in 19 quarters, according to company President Lyle Jensen and Chuck Coppa, the firm´s chief financial officer.
Net income for the third quarter ended June 30 was $313,000 compared with a loss of $981,000 for the same period a year ago. Net sales for the quarter totaled $5.3 million, up 13 percent from the $4.7 million from the third quarter of 2006.
For the nine months, GreenMan had a net loss of $344,000 on sales of $13.7 million, compared with a loss of $3.7 million on sales of $12.1 million for the first nine months of fiscal 2006.
GreenMan´s shipments of crumb rubber were more than 7.7 million pounds in the third quarter of 2007, up 47 percent from shipments in the third quarter of 2006. End products such as crumb rubber for athletic fields, playgrounds, rubberized asphalt, tire-derived fuel and other applications now make up about 35 percent of GreenMan´s total revenues, compared with 15 percent three or four years ago, according to Coppa.
"The world is changing, there´s a new focus on recycled products, and GreenMan is benefiting from that," Jensen said in a teleconference. "Thanks to a new focus on core markets and upgrades of the company´s equipment, GreenMan can now concentrate on the final phase of its turnaround plan, which is to seek appropriate joint ventures and acquisitions."
It is too early to reveal any details, but discussions are ongoing, he added.