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Detrex Corporation Reports Earnings for the Third Quarter of 2013 and Announces a 4th Quarter Dividend



  Detrex Corporation Reports Earnings for the Third Quarter of 2013 and
  Announces a 4th Quarter Dividend

Business Wire

SOUTHFIELD, Mich. -- November 8, 2013

Detrex Corporation (Pink Sheets: DTRX), today announced 2013 third quarter net
income of $796,768, or $0.46 per fully diluted share, compared to net income
of $363,235, or $0.21 per fully diluted share in the third quarter of 2012.
Year-to-date 2013 net income was $2,749,920, or $1.59 per fully diluted share,
compared to net income of $18,218,730, or $10.58 per fully diluted share for
the year-to-date period in 2012. The 2012 net income includes net income from
discontinued operations related to the sale of the Company’s Harvel Plastics,
Inc. subsidiary. The third quarter 2012 loss from discontinued operations was
$85,191 and the year-to-date gain was $16,459,353. The Company also announced
that it will pay a $0.25 quarterly dividend on December 12, 2013 to
shareholders of record as of November 29, 2013.

Third quarter sales of $10.1 million were approximately the same as in the
comparable period last year. This sales level is approximately $1 million
below the sales in the first and second quarters of this year due to market
conditions that softened near the end of the second quarter. Year-to-date
sales in 2013 are $32.5 million compared to $33.5 million in the same period
last year. The year-over-year shortfall is primarily the result of sales to a
major customer that began to decline after the first quarter of 2012. Sales to
new and existing customers have partially offset this reduction in sales.

The 2013 pre-tax income from continuing operations of $0.9 million for the
quarter and $3.9 million year-to-date are higher than the corresponding $0.7
million and $2.8 million of 2012 primarily due to the absence of provisions
for environmental expense. In 2012 the provisions for environmental expense
were $0.6 million for the third quarter and $1.8 million for the year-to-date.
The Company increased the reserve for environmental liabilities to $17.0
million in the fourth quarter of 2012 as the result of an in-depth evaluation
of these liabilities. The majority of the liabilities were transferred to a
third party in a June 2013 transaction. The savings from eliminating the
environmental provision have been partially offset by increases in
manufacturing costs, depreciation and amortization, interest expense, as well
as non-recurrence of a legal expense recovery in 2012.

“Elco is performing well in the market for industrial lubricant additives in
spite of soft conditions. We are continuing to invest in product development
and organizational capabilities that will provide new opportunities,” said
Detrex President and CEO, Tom Mark. “Management and the Board continue to
investigate opportunities to enhance shareholder value.”

About Detrex Corporation

Founded in 1925, Detrex Corporation through its subsidiary The Elco
Corporation is a leading manufacturer of high performance specialty chemicals
including additives for industrial petroleum products and high purity
hydrochloric acid.

Forward Looking Statements

Statements included in this press release that are not historical in nature
are “forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995 (the “1995 Act”). The words “believe,” “expect,”
“anticipate,” “estimate,” “guidance,” “target” and similar expressions
identify forward-looking statements. The Company cautions readers that
forward-looking statements are subject to certain risks and uncertainties,
which could cause actual results to differ materially from those projected in
the forward-looking statements. Certain risks and uncertainties are identified
from time to time in the Company’s reports. Some factors that could cause
results to differ materially from those projected in the forward-looking
statements include: market conditions, environmental remediation costs,
pension expense and funding requirements, liquidation value of assets, and
marketability of real estate and the market value and future liquidity of
Detrex stock. The Company claims the protection of the safe harbor for
forward-looking statements contained in the 1995 Act.

                                                                   
                               Detrex Corporation and Subsidiaries
                               Condensed Consolidated Statements of Operations
                               (unaudited, in thousands)
                                                        
                               Three Months Ended        Year to date
                               September 30              September 30
                               2013         2012         2013       2012
                                                                     
Net sales                      $   10,127   $ 10,102     $ 32,518   $ 33,502
                                                                     
Cost of sales                      6,616      6,633        21,354     21,984
Selling, general and               2,210      2,095        6,245      6,301
administrative expense
Provision for depreciation         304        289          902        861
and amortization
Provision for corporate            -          600          -          1,800
environmental reserves
Interest (Income) Expense          67         (40    )     85         (55    )
Other (Income) Expense, net        14         (192   )     57         (188   )
Income from continuing
operations
before income taxes                916        717          3,875      2,799
                                                                     
Provision for income taxes         119        269          1,125      1,039   
Net Income from continuing         797        448          2,750      1,760
operations
                                                                     
Discontinued
operations:
Gain (loss) on sale of             0          (85    )     0          16,459
Subsidiary, net of tax
Income from the operation
of Subsidiary, net of
income tax
                                                                     
Net income                     $   797      $ 363        $ 2,750    $ 18,219  
                                                                     
Basic earnings per common
share attributable to
Detrex shareholders:
From continuing operations     $   0.48     $ 0.27       $ 1.64     $ 1.05
From discontinued                  -          (0.05  )     -          9.82    
operations
Net earnings per share         $   0.48     $ 0.22       $ 1.64     $ 10.87   
                                                                     
Fully diluted earnings per
common share attributable
to Detrex shareholders:
From continuing operations     $   0.46     $ 0.26       $ 1.59     $ 1.02
From discontinued                  -          (0.05  )     -          9.56    
operations
Net earnings per share         $   0.46     $ 0.21       $ 1.59     $ 10.58   
                                                                     
Shares outstanding, basic          1,676      1,676        1,676      1,676
Shares outstanding, fully          1,726      1,721        1,726      1,721
diluted
                                                                     
                                                                     
                            Condensed Consolidated Balance Sheets
                                                                     
                               Unaudited    Audited
                               Sept 30      Dec 31
                               2013         2012
Assets
                                                                     
Current Assets                 $   18,553   $ 21,000
                                                                     
Property and equipment, net        10,157     10,433
                                                                     
Other assets                       1,626      5,858
                                             
Total assets                   $   30,336   $ 37,291  
                                                                     
Liabilities and
stockholders' equity
                                                                     
Current liabilities            $   9,047    $ 8,795
                                                                     
Non-current liabilities            8,663      17,363
                                                                     
Detrex Corporation                 12,626     11,133
shareholders' equity
                                             
Total liabilities and          $   30,336   $ 37,291  
stockholders' equity
                                                                     

Contact:

Detrex Corporation
Thomas E. Mark
Phone: (248) 358-5800
FAX: (248) 799-7192
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