Alesco Reports Full Year Net Loss of $13 Million

Submitted by Jim Thesiger on 28 July, 2009 - 16:09

Alesco Corporation (ALS), a company that is engaged in building materials and home products business has recorded a full year net loss of about $13 million. However, the Alesco authority claimed that it is still in a good condition for the future market recovery. Comparing with the previous year’s $65.5 million net profit before significant items, the company recorded $29.1 million for the recently ended year.

According to Justin Ryan, the chief executive of Alesco Corporation, the company was going through a difficult time for the last 12 months due to a downturn in the overall economy. However despite the bad financial condition, the company did focused on strengthening the balance sheet and operations for the last 12 months and expecting to recover based on the strategic decisions taken by the authority, he added. Mr. Ryan is pretty much confident about the chances of Alesco getting back in track for the coming days saying that the company has enough cash generating businesses and will be benefited when the housing and other related sectors starts to recover.

In order to deal with the crisis the company reduced its cost base as much as $20 million by lowering its workforce. About 2,300 workers were employed by the group during May. It is to be mentioned that Alesco recorded lower contributions from all its arms during 2008-09. Two of its divisions, Functional and Decorative Products and Water Products and Services both recorded 38 percent drop in earnings before amortisation, interest and tax. Garage Doors and Openers reported 23 percent fall and the Construction and Mining unit saw a fall of 25 percent. The group sold the Scientific and Medical division in April for $175 million, which the Alesco authority claimed helped the company to improve its balance sheet. The company booked a write down worth of $70 million of intangibles in its Water Product and Services division.