ZCL Composites Reports Second Quarter 2016 Financial Results
Edmonton, Alberta – ZCL Composites Inc. (TSX: ZCL) today announced financial results for the second quarter ended June 30, 2016.
“We enjoyed strong market conditions during the second quarter of 2016 for our Underground Fluid Containment operations, which represent the largest part of our business,” said Ron Bachmeier, President and Chief Executive Officer. “Unfortunately our smaller Aboveground Fluid Containment operations, conducted primarily through ZCL Dualam, continued to underperform. As we see no turnaround in the foreseeable future, we have made the strategic decision to cease ZCL Dualam operations and exit the majority of the Aboveground Fluid Containment business effective August 4, 2016.”
“Despite our efforts over the past two years, we have not been able to establish a sustained competitive advantage in the markets served by ZCL Dualam, a business acquired by ZCL in 2010. Exiting the ZCL Dualam operations will allow management to concentrate efforts on growing our traditional Underground markets, where we have profitable and sustaining growth opportunities. We expect the remaining Aboveground business will be less than 5% of total revenue going forward.”