Hedging and Cost Containment in Procurement Coupled to Efficiencies and Strict Operating Cost Reductions of in Excess of 30% Exceed Management Objectives
TRENTON, NEW JERSEY--(Marketwire - 02/15/11) - Falken Industries Ltd (OTC.BB:FLKI - News) -
Operating Margins for this international leader in its industry continued to rise and soared more than 10% to 38,43% for the YE December 31, 2010. This performance arises notwithstanding heavy development and promotional expense and distributor support for a fast expanding global distribution network.
"This is particularly noteworthy because FLKI has resisted all temptations to a policy of pass-along price increases and is now the uncontested recognized leader for price stability," said Manuel Garcia, communications officer.
The company maintains its profitability even as it continues its market share expansion processes fueled in part by its ability to refrain from price increases.
FLKI cost control advantages and consequent absence of price increases to distributors some in difficult economic environments are a hugely contributing factor to its leadership position and expanding global market share.
Much of the reputed success of the company lies with its vaunted procurement and purchasing efficiencies which have hedged its raw material cost up to three years, given it substantial cost advantages over its competitors. "Enhancement of these strengths was materially emphasized during 2010 and will continue through 2011," added Garcia.
Sales are projected to continue their steady increase, boosted by a significant improvement in global market share of FLKI product conceptions because these have been progressively filling the voids created by over priced and over extended competitors.
FLKI professional lines are continuing to fuel considerable interest and growth, motored by the barely year old product concept "Brilliance".
Military and governmental product conceptions in protective, disinfecting and cleansing agents are developing successfully.
A sampling of FLKI product conceptions may be seen at www.cleanplus.com. Clean Plus® is the best known branded collection of FLKI consumer, professional and industrial product concepts.
About Falken Industries Ltd:
Falken Industries Ltd (OTC.BB:FLKI - News) is a diversified industrial conglomerate that operates in Chemicals, Wet Wipe and Biodegradable Technology. Falken Industries Ltd is the concept behind more than 160 products distributed through a network of global platforms and the recipient of trade awards for innovations, biodegradability and environmental and health quality standards.
SAFE HARBOR STATEMENT: This news release contains "forward-looking statements" made pursuant to the safe harbor provisions of the 1995 Private Securities Litigation Reform Act. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." Such statements are subject to risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that our products may not achieve customer acceptance or perform as intended, that we may be unable to obtain necessary financing to continue operations and development, and other risks. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements.
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