GREENMAN Posts $15 MIL. LOSS
Scrap tire recycler GreenMan Technologies, Lynnfield, Mass., has announced its financials for the year ended Sept. 30, 2005.
According to GreenMan CFO Chuck Coppa, the company recorded an aggregate net loss of $15.2 million. In fiscal year 2004, GreenMan reported a net loss of $2.6 million. The majority of GreenMan’s net loss in fiscal year 2005 can be attributed to discontinuing operations in Georgia and Tennessee, which cost the company more than $11 million.
GreenMan has also received notice from the American Stock Exchange (AMEX) stating that it intends to initiate proceedings to delist the company. GreenMan has announced plans to file an appeal.
Part of GreenMan’s efforts to turn itself around have included appointing a new CEO to replace Robert H. Davis, who resigned "to pursue other interests," according to the company.
Lyle E. Jensen, a member of GreenMan’s board, was appointed president and CEO in April.
"Lyle has been one of our toughest critics with regards to balance sheet management and multi-site operational checks and balances," Maury Needham, GreenMan’s chairman of the board, says. "His breadth of operational experience, business acumen and leadership skills make him an excellent choice to lead GreenMan as we begin a new chapter in our history."
Jensen’s previous experience includes serving as executive vice president and COO of Auto Life Acquisition Corp. and as a member Western Capital Holding LLC’s board of directors.
In related news, Jensen has agreed to purchase 500,000 shares of unregistered GreenMan common stock, valued at $140,000, while Nicolas DeBenedictis, an independent director and a member of the company’s compensation committee, has agreed to convert nearly $76,000 of short-term debt and accrued interest into approximately 273,000 shares of unregistered GreenMan common stock.
OHIO DNR AWARDS GRANTS
The Ohio Department of Natural Resources (DNR) Division of Recycling & Litter Prevention has awarded nearly $1.5 million in grants to boost scrap tire recycling in the state.
The grants range from $75,000 to $350,000, depending on the amount of recycled tires the project uses. The grant recipients have proposed converting manufacturing operations to accept material from scrap tires; expanding tire processing; using scrap tire material in civil engineering projects; and developing recycling-related technology for scrap tire material.
Grantees must provide matching funds equal to the grant amount.
A list of grant recipients is available at www.RecyclingToday.com.
PLASTIC BOTTLES TO INCREASE SHARE OF BEVERAGE MARKET
Production of packaged beverages in the United States will approach 39 billion gallons in 2010, resulting in $19.7 billion in demand, according to the Freedonia Group, a Cleveland-based market research firm.
The Freedonia Group study predicts that plastic containers will continue to represent the growth segment of the beverage container industry, having captured a significant share of the market from metal, glass and paperboard containers throughout the past several decades. Advances will be fueled by robust prospects for PET bottled water, according to the Freedonia study.
While bottles are expected to remain dominant, more rapid growth is anticipated for pouches as ready-to-drink beverages are converted to pouch packaging based on advantages in terms of reduced material consumption and portability.
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