Sales to our other customers reflected an 8% decline in sales of residential carpet products and 2.3% growth in total carpet sales. During the third quarter, sales of our new modular/carpet tile products were over $1.5 million and sales of our commercial broadloom products grew over 18% compared with the year-earlier-quarter.
Despite higher raw material, utilities and other costs, our third quarter gross margin percent remained flat with the third quarter of last year. Higher selling prices and a more profitable product mix offset higher raw material and manufacturing costs.
The full impact of the selling price increase we announced near the end of the second quarter should affect results for the fourth quarter of this year. For the first nine months of 2007, our gross margin percent improved by 1.4 percentage points. The improvement reflects higher selling prices and a better product mix, as well as lower cost from improved operational performance.
Operating profit as a percentage of net sales was 6.2% for the third quarter of this year compared with 6.7% for the third quarter a year ago.
The marginally lower operating profit percentage reflects the effect of higher selling and administrative expenses and improved other operating income. For the first nine months operating profit was 5.3%, up from 4.6% in the prior year. The first nine months of 2006 included expenses totaling $3.2 million to terminate a legacy defined benefit pension plan.
marketing@alchempro.com
