SAVAGE, Minn. (May 20, 2008) — Tire recycler GreenMan Technologies Inc. posted a loss in its second quarter and first half of fiscal 2008 but said it improved its revenues and gross margins over the same periods last fiscal year.
GreenMan had a net loss of $880,000 on sales of $4.3 million for the second quarter ended March 31, 2008, compared with a loss of $648,000 on sales of $3.5 million for the quarter ended a year earlier.
For the first half, GreenMan had a $862,000 loss on sales of $10.2 million, compared with a loss of $657,000 on sales of $8.4 million for the first half of fiscal 2007.
January through March typically is GreenMan's weakest business period, said GreenMan CEO Lyle Jensen.
That said, GreenMan has so far this year shipped 9.6 million pounds of crumb rubber, up 40 percent from the same period in 2007, and has either written or made verbal commitments for all its planned 2008 crumb rubber production, he said.
The company's Welch Products Inc. subsidiary also has bright prospects, especially its recent contract with the Iowa Department of Natural Resources and the Iowa School Board Association to provide Welch recycled rubber playground tiles directly to Iowa schools.
Welch expects to provide playground tiles to between 20 and 25 schools this year, according to Jensen, with plans to increase that number in future years.