SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
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Date of Report(Date of Earliest Event Reported): August 5, 1998
BONTEX, INC.
(Exact name of Registrant as specified in its charter)
Virginia 0-5200 22-1427551
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
One Bontex Drive
Buena Vista, Virginia 24416-1500
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (540) 261-2181
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
Bontex, Inc. announced today that it expects consolidated net sales for its
fiscal year ended June 30, 1998 to be as much as 14% lower than its year-end
1997 consolidated net sales of $50.3 million. Consolidated operating income for
fiscal 1998 is expected to be near break-even or marginally profitable, well
below the record $4.0 million in fiscal 1997. These amounts are UNAUDITED and
are subject to change based on the results of normal audit and annual
adjustments. Audited financial statements are expected to be issued on or before
September 28, 1998.
James C. Kostelni, President of Bontex and CEO said "the decrease in
profitability can be attributed to a number of factors, including higher raw
material costs, lower sales volume in the Asian and North and South American
markets, as well as higher selling, general and administrative costs. The
situation in Asia will continue to have significant impact on the Company's
future sales and profitability because of, among other things, falling demand
for footwear products sold in Asia, North America, and European markets.
Additionally, as a result of currency devaluations in key Asian countries,
Bontex products are now more expensive than locally manufactured products."
"Management has implemented sales action and cost reduction plans in an
effort to address these issues. While it will take time, the Company believes
that it has a firm basis upon which to return the Company to profitability."
Safe Harbor Statement. Statements in this news release that are not
strictly historical may be deemed to be "forward-looking" statements, which
should be considered as subject to the many uncertainties that exist in the
Company's operations and environment. These uncertainties, including uncertainty
of demand from Southeast Asia for Bontex products, and in general, changing
economic conditions, market demand and pricing, competitive and cost factors and
the like, are incorporated by reference to the Bontex, Inc. 1997 Form 10-K filed
with the Securities and Exchange Commission. Such factors could cause actual
results to differ materially from those in the forward-looking statements.
Bontex is a leading global manufacturer of elastomeric wet web impregnated
fiberboard products used by the footwear, headwear, luggage, leathergoods, and
automotive industries. The Company maintains corporate headquarters and
manufacturing facilities at Bontex, Inc. USA, One Bontex Drive, Buena Vista,
Virginia, and at Bontex S.A., Stembert Belgium; a distribution and converting
facility at Bontex Italia, Verona, Italy; and distribution subsidiaries, Bontex
de Mexico, S.A. de C.V., Leon, Mexico, and Bontex Hong Kong in Hong Kong. Bontex
also maintains a network of liaison offices and distributors globally to market
Bontex products.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
BONTEX, INC.
By s/ James C. Kostelni
James C. Kostelni
President
Date: August 6, 1998
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