Annual Report
Chase Corporation reported fiscal 2011 revenue of $123.0 million, a 3.6% increase over fiscal 2010. Income from continuing operations, net of taxes increased 1.9% to $10.9 million.
Global markets continued to experience turmoil and the Company had to be more focused than ever to meet the familiar challenges of the past several years, and the new competitive situations that seemed to arise daily.
In the face of all this our results reflect the strength of Chase’s business model, which is grounded in attention to our core businesses, a sharp eye on costs and the ability to take advantage of market opportunities. I am
fortunate to be surrounded by talented managers and dedicated employees.
Key initiatives in fiscal 2011 centered on continuing to rebuild operations, tailoring management resources to fully leverage our resources, and evaluating potential acquisitions that will strengthen our global position. While we did not announce new acquisitions, I am pleased with the progress made on the operations side and with additions to our global management team.
In fiscal 2011 operations at our Webster, Massachusetts plant were shifted to our new facility in Oxford, Massachusetts. We will also be transferring manufacturing to Oxford from our Randolph, Massachusetts plant over the next year.
Global growth means more complex businesses, which require top-notch management talent to ensure that company-wide strategic plans are implemented efficiently. Our investments in people in fiscal 2011 have brought together a terrific team of experienced, creative managers to lead this critical area of the Company.
As we expand, opportunities for new products that satisfy customer needs present themselves. This will be an important strategy going forward and one that we believe will deliver ongoing shareholder value. Our approach will combine our technology rich resources and an innovative spirit to bring a steady stream of exciting products and applications to market.
Highlights
Overall, our Industrial Materials and Construction Materials businesses did well, but results within each segment were mixed.
Industrial Materials
- Demand for power distribution cables in the energy market was good and consistent through the year.
- Communications products were negatively affected by increased raw material costs, which remained volatile throughout the year
- a trend we see continuing into fiscal 2012. - HumiSeal®, the world’s leading electronic coatings brand, had a positive year overall but demand in some key markets, especially
consumer appliances and automotive softened in response to the global recession.
Construction Materials
- CIM Industries, which was acquired in fiscal 2010 has integrated well and has strengthened our position in high performance industrial coatings and lining products for water and wastewater systems.
- Pipeline tape product sales were steady but were held back somewhat by a temporary production slow down in our UK plant. • U.S. government spending on infrastructure projects tapered off and resulted in lower revenue and earnings.
- Demand for private label products was down significantly.
Fiscal 2012
Looking ahead, we do not anticipate any significant short-term improvements in the economy. As always, we will plan for the challenges and remain ready to take advantage of opportunities when they emerge. An important part of our success is the support of all Chase employees and you, our shareholders.
Sincerely,
Peter R. Chase
Chairman and Chief Executive Officer
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