HOUSTON-Gundle Environmen-tal Systems Inc.'s $71 million acquisition of SLT Environmental Inc. not only created a dominant manufacturer of HDPE landfill liners, it has given the company, now Gundle/SLT Environmental Inc., a case of financial indigestion. For the first nine months of fiscal year 1995, ended Sept. 30, Gundle/SLT racked up one-time charges of $15.3 million - $11.8 million of that in the third quarter. The company, which was profitable in 1994, has lost $3.79 million in the first nine months, and $3.25 million in the quarter. Through the first nine months of 1994, the company had earned a profit of $4.5 million.
William P. Reid, president and chief executive officer, said the one-time charges resulted from the merger.
``More than 80 percent of the nonrecurring charges relates to the cost of product standardization and quality enhancement, including the write-downs of compounding and geonet manufacturing equipment, all of which will help us become the low-cost producer of geomembrane products,'' he said.
Without the nonrecurring charges, earnings would have been $6.4 million for the first nine months, a 42 percent increase over $4.5 million in the year-earlier period.
Sales also have grown. For the third quarter, sales were $79.2 million, compared with $76.3 million for the same period a year ago. For the first nine months, sales were $189.8 million, up from $155.3 million in the first nine months of 1994.
Reid added that ``it will be difficult this year to duplicate our performance for the fourth quarter of 1994, which was at record levels.''