Veltex Corporation announced that it has purchased two trucks that will double the carrying capacity and increase the earnings for the company. These trucks will add $600,000 in revenue, along with $240,000 in profit per year. Along with the other two trucks Veltex already owns, this results in $1.2 million in revenue and $480,000 in profits. These two trucks will have a positive impact on the earnings per share for the remainder of this year, and into the future.
Javeed Matin, Chairman and CEO of Veltex stated, "The purchase of these trucks happened sooner than expected. Our core business remains strong, and we see that trend to continue in the future. This trucking capacity is a positive step in keeping up with the demand we have encountered."
Mr. Matin went on to say, "We are in the process of looking at many acquisitions that will increase the earnings and revenue for Veltex. Our main goal is to build Veltex into a large company, and in the process, having our shareholders benefit. With the earnings and equity we have built into the company, we believe that we will soon be recognized on Wall Street."
Veltex has earned over .01 EPS for the first half of 2002, historically the weakest time for profits and earnings.
Veltex is projecting possible revenue for 2003 of $33,000,000, and potential net profits of $8.6 million based on the company's current acquisition and internal growth. That conservatively could lead to earnings of .25 per share for the next fiscal year. Veltex has a current book value of 40 cents per share.
Veltex is a manufacturer and distributor of high quality fabrics. Veltex has a manufacturing facility in Bangladesh and a sales and marketing office in Los Angeles, California. The company is currently producing 100% cotton twill, duck, and sheeting to fill existing orders and has also started to produce caps, twill shirts, and T-shirts to meet the demands of additional buyers in the U.S. With the ability to produce quality merchandise at labor costs one-twentieth (1/20) of those in the U.S., Veltex is able to compete on a global basis with some of the highest margins in the industry, and is slowly gaining market share in the trucking and distributing business.
The Veltex U.S. operation is a distributor of high quality fabrics for apparel industries and an importer of caps, T-shirts, twill shirts, shorts, and other ready-made garment products for Promotional Product Industries. Veltex also owns 4 trucks (18 wheelers), carrying Veltex goods as well as providing trucking services to one of the largest trucking companies in the United States.
Safe Harbor forward-looking statements: Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reforms Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties which may cause the Company's actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, volatility of market prices, product demand, market competition, risks inherent in the Company's international operations, and the Company's ability to replace and expand.
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