TRENTON, NEW JERSEY--(Marketwire - Aug. 6, 2012) - Falken Industries Ltd (OTCBB:FLKI) -
FLKI today announced financial results for its 2012 Second Quarter ended June 30, 2012. The Company, consistent with projections continued its global market share expansion enhancing its product conceptions in Scandinavia and opening Super Distribution facilities in Turkey. FLKI has been particularly active in developing these markets. Net operating revenues even after unfavorable net currency adjustments to the strong dollar were up 34% from the year-ago quarter and net operating margins increased 17% to 45.53%. Profits (PPS) were a solid 2 cents per share on an annualized basis. "The company has been particularly keen on production efficiencies and expanding margins are the result" says Manuel Garcia, Communications Officer. "We expect continued progress in procurement, hedging, and production efficiencies throughout the year leading to higher revenue and profit, and this, notwithstanding the strong dollar." added Garcia.
During the quarter FLKI further authorized expansion in the number of its distribution platforms and funding for additional marketing and sales support for its distributor network in developing markets. Emphasis is focused on continuing to exploit the opportunities created by the weak economy, and on reinforcing market segmentation coverage and penetration in existing ones. "Because of our strong penetration of the female market we enjoy a substantial advantage in consumer products over our competitors" said Garcia. At the start of the economic crisis FLKI had elected to concentrate on extensive support of its existing distribution network and platforms. "We expect a substantial improvement in overall sales and profits, notably in professional and industrial products for the balance of the year, and a major breakthrough in 2013," emphasized Garcia.
The Company's revenues are Euro denominated, exposing it to negative consequences when converted to the recently stronger US dollar for reporting purposes. This has unjustifiably spooked investors. As a result the stock is trading at $ 0.0268 on clearly exaggerated fears of the impact of revenues subjected to conversion to a stronger US dollar for GAAP accounting. The company's core values and strong fundamentals are being indefensibly ignored and are consequently not reflected in the company's share price which trades at less than 30% of book value.
"The new products we are planning to release this year and through the Spring of 2013 are very strong, and we're really excited about them" said Garcia.
About Falken Industries Ltd :
Falken Industries Ltd (OTCBB:FLKI) is a diversified industrial conglomerate that operates in Chemicals, Wet Wipe and Biodegradable Technology. Falken Industries Ltd is the concept behind more than 160 products distributed through a network of global platforms and the recipient of trade awards for innovations, biodegradability and environmental and health quality standards.
SAFE HARBOR STATEMENT: This news release contains "forward-looking statements" made pursuant to the safe harbor provisions of the 1995 Private Securities Litigation Reform Act. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." Such statements are subject to risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that our products may not achieve customer acceptance or perform as intended, that we may be unable to obtain necessary financing to continue operations and development, and other risks. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements.