PureTec Corp. of Ridgefield, N.J., plans to sell its Styrex Industries injection molding subsidiary as part of the company's restructuring, designed to improve earnings.
The announcement coincided with the release of PureTec's third-quarter earning results. The quarter ended April 30 with the company posting sales of $93.1 million, down 7.9 percent, compared with $101.1 million for the same period last year.
``Styrex has been reclassified as a discontinued operation effective with the third quarter of 1997, and 1996 results have been restated to reflect this change,'' the company said in a news release.
The custom injection molder, located in High Point, N.C., no longer is running at capacity. The 100,000-square-foot facility employed 150 and operated about 30 presses.
Styrex was acquired in 1993 by the former Pure Tech International. End markets included computer casings and truck seats, developed using computer-aided design. Styrex helped customers design plastic parts to replace those that had been made of metal.
``We're in the process of negotiating [the sale of Styrex] with a few bidders,'' said William Walkowiak, director of investor relations. ``We expect the company to be sold to the right purchaser that has customers who can fill the capacity.''
Other restructuring moves include the reduction of the work force and overhead costs at the Burlington Resins subsidiary by about 15 employees. As a result, PureTec expects to reduce expenses by about $750,000.
Medical-grade vinyl expansions involved two additions to the Colorite Polymers division. A new medical plastics facility in Belfast, Northern Ireland, has opened and operates as Colorite Europe Ltd. Upgrades of Colorite facilities in Nevada are complete and serve customers in northern Mexico and on the West Coast.
PureTec also reported losses in its PET recycling operations and garden hose division. The firm blamed record drops in PET prices and unfavorable weather conditions for the results.
PureTec manufactures plastic products in four niche markets: home and garden products, medical plastics, packaging components, and specialty materials. The company employs about 2,000 and operates 22 manufacturing facilities worldwide. It reported sales of $345 million last year.