ANSONIA, CONN. — Farrel Corp. was dumped April 20 from the Nasdaq stock exchange, as the maker of compounding extruders, mixers and calendering equipment failed to meet a Nasdaq deadline to boost its stock value above $1.
>From now on, Farrel stock will be traded over the counter on Nasdaq's Electronic Bulletin Board.
Farrel also reported it lost money in 2000, as sales fell. Company officials, including Rolf Liebergesell, chairman and chief executive officer, did not return telephone calls seeking comment.
Farrel's stock had been trading at around $2 a share in early 2000, but it fell Dec. 27 to a low of 65 cents. Nasdaq officials told Farrel it would be delisted unless the company stock traded at $1 or more for at least 10 days. The deadline was April 11.
On April 18, the Ansonia company issued a two-sentence news release saying Nasdaq had determined that Farrel failed to comply with the minimum bid price and would be delisted at the start of business April 20.
Farrel makes machinery for the plastics and rubber industries at plants in the United States and United Kingdom.
Farrel's financial performance has mirrored its dismal stock price. Its 2000 sales were $64.2 million, a 13.7 percent decline from 1999 sales of $74.4. In 1998, the company generated sales of $98.3 million.
The company, which posted a profit of $1.76 million in 1999, finished 2000 with a loss of $983,000.
In a news release, Liebergesell said Farrel executives are "focused on cutting costs in order to maximize its operating results." Farrel laid off 56 employees in 2000, a 13 percent reduction in its work force.
Farrel blames much of its trouble on pressures from global currencies and slow market conditions in Europe. The weak euro "provides substantial advantages to competitors located in the euro-zone," said the company's annual report.
European sales declined about $10 million in 2000.
New orders were down 10 percent. Many customers are operating at excess capacity, so they do not need to buy new machinery, according to the company.