Cohesant Technologies reports improved financial results for fiscal 1997 first quarter

Business Wire, April 10, 1997

CLEVELAND--(BUSINESS WIRE)--April 10, 1997--Cohesant Technologies Inc. (Nasdaq:COHT) today reported improved financial results for fiscal 1997's first quarter, which ended February 28, 1997.

Net sales for the fiscal 1997 first quarter rose 18.5 percent to $3,464,152 from $2,923,651 for the comparable period last year. The increase was due to improved sales of adhesives, sealants and epoxy coatings as well as sales of equipment systems and parts. Because of lower manufacturing expenses and improved product mix, Cohesant's gross margin increased to 33.8 percent from 30.0 percent for the same quarter last year. The company cut its first-quarter net loss to $92,408, or $0.03 per share, from $170,855, or $0.06 per share, last year.

"The 18.5 percent rise in sales indicates increased customer acceptance of our company's products," said Morton A. Cohen, Cohesant's chairman and chief executive officer. "Although we spent more on marketing during this year's first quarter, the increase in gross margin enabled us to cut our pretax loss by two-thirds from the year-ago level. We are also pleased to say that our American Chemical Company plant in St. Louis, which had been damaged by fire last August, is now substantially back to production."

"Fiscal 1997 holds many business opportunities for Cohesant Technologies," Mr. Cohen added, "and we will work to make the most of them."

Cohesant Technologies Inc. designs, develops, and manufactures specialized spray finishing and coating application equipment and specialty coating, adhesive, and sealant products through its two subsidiaries: Glas-Craft, Inc. and American Chemical Company. Glas- Craft manufactures spray finishing and coating equipment that meets strict new clean-air standards. American Chemical Company manufactures and sells over 250 coating, adhesive, and sealant products, including Aquatapoxy(R) and the Raven line of high-performance coating systems that are resistant to water and corrosive breakdown by most acids and solvents and can be used in drinking water systems.

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                         COHESANT TECHNOLOGIES INC.
                     Summary Financial Data (Unaudited)

                          Three Months Ended      Three Months Ended
                          February 28, 1997        February 29,1996

Net sales                   $   3,464,152            $   2,923,651
Income (loss) before
   income taxes                   (92,408)                (274,071)

Net income (loss)                 (92,408)                (170,855)

Net income (loss)
   per share                $       (0.03)           $       (0.06)

Average number of common
   shares outstanding           2,688,343                2,656,111