McClain Reports Loss for Year

McClain Industries, Inc. reported sales for the year decreased to $91.549 million from $141.117 million the previous year. The net loss for the year was about $5 million, compared to a net loss of $85,854 the previous year.

Sales for the quarter were $19 million compared to $32.557 million for the same quarter a year earlier. The net loss for the fourth quarter was $2.369 million versus a net loss of $1.711 million the same quarter the previous year.

``The decline in sales from the previous year reflect the continuing slowdown in the manufacturing sector of the economy,'' said Kenneth McClain, president and CEO. ``Net sales decreased 35 percent from the prior year. The loss resulted from decreased sales volume, deep discounting, and increases in bad debt reserves due to the severity of the nationwide economic slowdown. We expect sales to remain depressed during Fiscal 2002 and are continuing our strategy of reviewing and reducing our operating costs and inventories to reflect reduced sales volume.''