McVicar announces first quarter results



    Trading Symbol: MCV

    TORONTO, June 1 /CNW/ - McVicar Industries Inc. ("McVicar" or the
"Company") is pleased to announce that it has filed its interim financial
statements and management's discussion and analysis (MD&A) for the first
quarter ended March 31, 2009. The detailed financial statements and MD&A can
be found on www.sedar.com. All amounts are in Canadian dollars unless
otherwise noted.

    Highlights of the first quarter results:

    
    -   Sales for the first quarter of 2009 was $8.4 million, a decrease of
        $ 0.7 million or 8%, compared to $ 9.1 million for the same quarter
        in 2008. This decrease was mainly due to the impact of global
        recession on both chemical and technical business. Sales generated
        from chemical business were $ 4.4 million for the first quarter of
        2009, a decrease of $0.5 million or 9%, compared to $ 4.8 million for
        the same period of 2008. Sales from the technical business were
        $4.0 million for the first quarter of 2009, a decrease of
        $0.2 million or 5%, compared to $ 4.2 million for the same period of
        2008.

    -   Gross profit for the first quarter of 2009 was $2.0 million, a
        decrease of $ 0.4 million, compared to $ 2.4 million for the same
        period of 2008 as a result of decreases in sales. Gross profit as a
        percentage of sales for the first quarter of 2009 was 24%, a drop of
        3%, compared to 27% for the same period of 2008. This decrease was
        caused by a number of factors, such as lower sales volume, product
        mix, and cut in selling prices, partially offset by the positive
        impact due to an $111,602 benefit from the sale of inventory written
        down in the fourth quarter of 2008.

    -   Operating expenses for the first quarter of 2009 were $ 1.43 million,
        versus $1.41 million for the same period of 2008. Operating expenses
        as a percentage of sales for the first quarter of 2009 was 17%,
        compared to 16% for the first quarter of 2008, an increase of 1%.

    -   Net income for the first quarter of 2009 was $ 386,457 or $0.01 per
        share compared to $ 327,775 or $0.01 per share for the same period of
        2008. This increase in net income was mainly due to the increase of
        ownership interest in chemical business, 90.5% in 2009 versus 51% in
        2008, and positive impact of an appreciation of the Chinese RMB. Net
        income as a percentage of sales was 5% for the first quarter of 2009
        compared to 4% for the same period of 2008.
    

    "The economic slowdown has negatively impacted the growth trend of our
sales and gross margins," said Gang Chai, President & CEO of McVicar,
"However, we took the opportunity to reshape our business structure,
reorganize our product mix, and re-enforce business relationships with our key
customers in the chemical business. Those changes were aimed in repositioning
our company for long-term success".

    This press release contains forward-looking statements which reflect the
Corporation's current expectations regarding future events. The
forward-looking statements involve risks and uncertainties. Actual results
could differ materially from those projected herein. Although we believe that
our expectations are based on reasonable assumptions, we can give no assurance
that our expectations will materialize. The TSX Venture Exchange Inc. has not
reviewed and does not accept responsibility for the adequacy or accuracy of
this release.





For further information:

For further information: Ms. Exavier Peterson at: 55 University Avenue,
Suite 605, Toronto, ON, M5J 2H7, Tel: (416) 366-7420, Fax (416) 366-7421,
www.mcvicar.ca

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