New Product Costs Cut R&B Profit

Jason Sandefur

R&B Inc. reported sales for the second quarter of 2005 increased 7% to $68.6 million. Net income dropped 13% to $4.6 million, hampered by product development costs related to the company’s goal of delivering “twice as many new parts in half the time” by the end of 2006.
“There is a current negative impact on profitability as we make these investments, which we believe will be more than offset by future sales growth, customer satisfaction and overall opportunities for the business,” explained CEO Richard Berman.
For the six months ended June 25, 2005, sales increased 8% to $129.8 million, while net income dipped 5.8% to $8.1 million. Web: rbinc.com �2005 FastenerNews.com