Olson Reports Quarterly Loss After Divestiture

Olson Industries reported 53% lower earnings from continuing operations and a $2.9 million net loss in its first quarter, thanks to a $3.3 million loss on the sale of its egg business.

Earnings from continuing operations were $390,000, against $827,000 in the first quarter a ago, when net income was $1.7 million. Per share, Olson lost $4.27 against a profit of $2.60 a year ago.

First quarter sales were up 6%, to $15.8 million.

Based in Sherman Oaks, Olson was previously one of the largest independent distributors of eggs in the nation, but is now exclusively a producer of plastic packaging products.

Olson chairman J.W. Buffington said the lower operating results from continuing operations are the result of rapidly increasing resin prices, which have narrowed profit margins. Company officials said the large loss on discontinued operations may be offset as the year continues, because further earnings would enable Olson to maximize tax benefits from the loss.