Gundle/SLT Environmental, Inc. Lowers Expectations for First Quarter

Apr 10, 2001, 01:00 ET from Gundle/SLT Environmental, Inc.

    HOUSTON, April 10 /PRNewswire/ -- Gundle/SLT Environmental, Inc.
 (NYSE:   GSE) today announced that it expects to report a loss for the first
 quarter ended March 31, 2001 of between $.23 and $.25 per share, compared with
 market expectations of a loss of $.16 per share.
     Samir Badawi, chairman, president and chief executive officer, said that
 reduced capital expenditure by the big waste management companies and weather-
 related delays in the U.S. resulted in a substantial decrease in first quarter
 orders.  Badawi went on to say most of the decrease was in the U.S. where
 units shipped were down.  Revenues for the first quarter will be approximately
 20 percent lower than the year-ago quarter, with about three percentage points
 of the decline due to foreign exchange differences.  The company also expects
 to report a decline in unit backlog at the end of the first quarter, compared
 to last year, Badawi said.
     "The lower gross margin we will report for the quarter is due directly to
 the decrease in sales volume," said Badawi.  "While US resin prices increased
 during the first quarter, shipments were from lower cost inventory.  We're
 continuing to manage the spread between raw material costs and our product
 selling prices to the extent that market price will allow.  We also continued
 to control operating costs during the quarter and expect SG&A expense to be
 close to last year."
     Gundle/SLT Environmental, Inc., headquartered in Houston, is a global
 manufacturer and marketer of geosynthetic lining solutions, products and
 services used in the containment and management of solids, liquids and gases
 for organizations engaged in waste management, mining, water, wastewater, and
 aquaculture.  GSE has also diversified its product line to include
 geosynthetic textiles, and premium nonwoven fabrics that are sold in a variety
 of markets including agriculture, automotive, electrical, construction, civil
 engineering, medical, furniture and bedding.
     The statements regarding future financial performance and results and the
 other statements which are not historical facts contained in this release are
 forward-looking statements that involve risks and uncertainties, including,
 but not limited to, market factors, the worldwide manufacturing capacity in
 the industry, raw material pricing and supply and other factors detailed in
 the company's Securities and Exchange Commission filings.
 
 

SOURCE Gundle/SLT Environmental, Inc.
    HOUSTON, April 10 /PRNewswire/ -- Gundle/SLT Environmental, Inc.
 (NYSE:   GSE) today announced that it expects to report a loss for the first
 quarter ended March 31, 2001 of between $.23 and $.25 per share, compared with
 market expectations of a loss of $.16 per share.
     Samir Badawi, chairman, president and chief executive officer, said that
 reduced capital expenditure by the big waste management companies and weather-
 related delays in the U.S. resulted in a substantial decrease in first quarter
 orders.  Badawi went on to say most of the decrease was in the U.S. where
 units shipped were down.  Revenues for the first quarter will be approximately
 20 percent lower than the year-ago quarter, with about three percentage points
 of the decline due to foreign exchange differences.  The company also expects
 to report a decline in unit backlog at the end of the first quarter, compared
 to last year, Badawi said.
     "The lower gross margin we will report for the quarter is due directly to
 the decrease in sales volume," said Badawi.  "While US resin prices increased
 during the first quarter, shipments were from lower cost inventory.  We're
 continuing to manage the spread between raw material costs and our product
 selling prices to the extent that market price will allow.  We also continued
 to control operating costs during the quarter and expect SG&A expense to be
 close to last year."
     Gundle/SLT Environmental, Inc., headquartered in Houston, is a global
 manufacturer and marketer of geosynthetic lining solutions, products and
 services used in the containment and management of solids, liquids and gases
 for organizations engaged in waste management, mining, water, wastewater, and
 aquaculture.  GSE has also diversified its product line to include
 geosynthetic textiles, and premium nonwoven fabrics that are sold in a variety
 of markets including agriculture, automotive, electrical, construction, civil
 engineering, medical, furniture and bedding.
     The statements regarding future financial performance and results and the
 other statements which are not historical facts contained in this release are
 forward-looking statements that involve risks and uncertainties, including,
 but not limited to, market factors, the worldwide manufacturing capacity in
 the industry, raw material pricing and supply and other factors detailed in
 the company's Securities and Exchange Commission filings.
 
 SOURCE  Gundle/SLT Environmental, Inc.