Mixed results for ingredients player United-Guardian

The company, which manufactures ingredients for personal care and cosmetics, together with the pharmaceutical industry, reported that net sales for the most recent second quarter came in at $3.06m, slightly down on sales for the corresponding quarter in 2006 of $3.02m. Company president Ken Globus blamed the drop on failing pharmaceutical sales during the second quarter as a result of increased activity from pharmaceutical customers during the first quarter, who were tyring to beat price hikes. However, he also pointed out that a stronger performance from the company's other operations was able to counterbalance the effect of the reduced second quarter pharmaceutical sales during the first six months of the year. "This was a result of increased sales of our personal care products, which we expect to continue as we bring more of those types of product to market,"​ said Globus. However, this performance was contrasted by a much stronger first quarter, which meant that revenues for the first six months increased by 22.3 percent, up from $5.92m to $7.24m in the period January to June 2007. Profitability even rose during the stagnant second quarter, with net income for the quarter up by 13 percent, from $650,396 to $735,270. The figure was even stronger for the six month period, with net income up by 49 percent, from $1.27m in the first six months of 2006, to reach $1.89m. Investors were not reassured by the results, inevitably concerned about the sales performance during the second half. Shares fell sharply, down 22 percent from the start of business yesterday, to reach $8.75 at the close of business. Currently the company markets approximately 15 - 20 products, mainly on the US market, but it says it also working on the research and development of a host of other products, which it eventually hopes to launch with the help of outside marketing. On the personal care side the company produces formulations for after shave balm, body milk, eye firming gel, hand and body lotion and an emolient foaming bath gel.