Chase performed well in FY2017. Revenue increased, and we realized good bottom line growth while expanding our offerings, gaining new customers and increasing market share.
The Company operates in many market segments and faces significant competition in most of them. Our success has come from a sharp focus on core businesses, while enhancing operational infrastructure and commonality to gain competitive advantage.
This strategy has been in place for more than five years. We will continue on this path, and grow through:
To support these strategic drivers, we will exercise strong financial discipline to achieve increased margins, working capital and cash flow.
Importantly, Chase Corporation is a culture in which respect for our peers, customers and vendors is part of our fabric. We are committed to sustainable practices across operations, and in the community.
The Industrial Materials segment of the business achieved a marked increase in revenue over the prior year. Greater sales of our electronic and industrial coatings resulted from robust demand from the automotive and the Asian appliance markets, and strong demand from the ever-expanding Internet of Things (IoT), which encompasses myriad markets: personal healthcare, home automation, urban management, energy conservation, industrial controls and more. Chase has a place in many of these.
Favorable trends in automotive (including electric vehicles), home appliances, server cable manufacturing and broadband infrastructure build led to positive results in FY2017, and boosted results for HumiSeal® conformal coatings, Dualite® microspheres, NEPTCO® communications cable tapes and Trace-Safe® detection products.
The segment’s organic increases in these legacy product lines were complemented by the September 2016 acquisition of the operations of Resin Designs, LLC, which are now included within the electronic and industrial coatings product line.
Resin Designs, a great strategic acquisition for Chase Corporation, broadens our adhesives and sealants product offering and manufacturing capabilities, and expands our market reach into logical adjacencies.
Sluggish infrastructure project activity in the Middle East was a drag on the Construction Materials segment’s performance overall. This was lessened by increased sales of our bridge and highway, domestically-produced pipeline coatings and coating and lining systems products. Rosphalt50® fared very well as a key supplier to the Governor Mario M. Cuomo Bridge project in New York. Rosphalt50® is a concentrated thermoplastic asphalt additive that creates a dual-purpose waterproofing and wearing surface and has been proven to substantially extend the life of bridge decks and highways.
We are proud that our Construction Materials products have been trusted for use in high-profile projects such as the waterfalls and reflecting pools at the 9/11 Memorial, and more recently in the fountain at the Seaport Square Park at the Boston Innovation Center.
We further consolidated operations in FY2017 with the sale of our low-growth-potential fiber optic cable components business, our Paterson, NJ location and our unneeded office real estate holdings. As we expand our businesses through acquisitions, we will continue to seek opportunities for consolidation that bring about operational efficiencies.
As our global reach expands and products find new markets, information infrastructure is critical. We continue to build upon the ERP system put in place a few years ago, adding tools that enable our talented global associates to harness information and collaborate for improved performance.
While we cannot predict the future, we have confidence that our strategic direction, our management team and our employees will keep the Company on the right trajectory. That said, we fully expect to be challenged by strong competition, global economic uncertainty and the surprises always present in dynamic markets. We look forward to FY2018 and beyond, and are grateful to you, our shareholders, for your support.
Adam P. Chase
Chief Executive Officer
Kenneth J. Feroldi
Chief Financial Officer
Peter R. Chase
Select a Report to download a copy: