Fourth quarter gross profit increased $4.7 million to $41.4 million compared to $36.7 million during the same period the prior year, representing an increase of 12.8%. The company's gross margin improved to 15.7% compared to 15.3% for the prior year and 14.1% in the third quarter of 2006.
Cost of goods sold for the fourth quarter included $1.2 million of higher depreciation costs compared with the prior year period as a result of the capacity investments made during the year.
The company continued to control selling, general and administrative (SG&A) expense during the quarter, reducing SG&A as a percent of sales to 10.3% compared to 10.7% the prior year. As a result, underlying performance improved substantially compared to the same period in 2005 and the prior quarter.
marketing@alchempro.com
