Submitted by: North American Technologies Group, Inc.
Posted: Aug 15, 2008 – 03:48 PM EST
Aug. 15 /CSRwire/ - IRVING, Texas, Aug. 15 /PRNewswire-FirstCall/ -- North American Technologies Group, Inc. (OTC Bulletin Board: NAMC), world leader in engineered composite railroad ties, today announced a $272,802 quarterly profit for the third quarter of the Company's fiscal year that ends September 28, 2008. This is the Company's second consecutive quarterly profit. The profit of $272,802 resulted from $8.1 million of revenue for the quarter (a $2,340,973 or 41% increase in revenue over the same quarter of last year). The increase in revenues of $2,340,973 resulted from a 13% increase in the number of ties sold and a 25% increase in the average sales price of ties. For the quarter the Company achieved a gross profit of $2,418,421 compared to a gross profit of $217,876 for the same quarter in the previous year.
Mr. Rod Wallace, the company's President and Chief Executive Officer, said, "The profit reported for the quarter is the result of enumerable improvements in the operation of our Marshall, Texas manufacturing facility (our subsidiary, TieTek LLC is the only ISO 9001 certified composite tie manufacturer) and the dedication of all of our employees who work diligently to produce our composite ties and support our operations.
"We believe that our customers are beginning to recognize the value proposition of our ties. The durability, safety and profitability of our ties has been demonstrated by more than ten (10) years of use in customer applications in over 2 billion (2,000,000,000) gross tons of load on individual ties in commercial rail lines. Our ties are expected to last around 40 years compared to wood ties that in some areas, particularly damp areas, of the United States may only last 7 to 10 years. Our new website at http://www.tietek.com contains testimonials of numerous satisfied customers. We are proud that the Chicago Transit Authority recently installed almost 63,000 of our ties under its track improvement project for its Blue Line running from Chicago O'Hare Airport to downtown Chicago. Our website contains links that describe the CTA's use of our ties. The fact that our ties can be used interchangeably with wood ties makes them entirely compatible with wood ties already installed in the tracks. TieTek's ties are being adopted by an increasing number of users, major rail lines, transit authorities and industrial users.
"The Company has moved from the start-up phase to a true operating entity. In so doing, our Company is demonstrating that protecting the environment and operating a profitable business are not mutually exclusive. While many companies are searching for ways to demonstrate sustainability, our company is in the business of sustainability. In fact, production of 3,300 of our TieTek(TM) ties (approximately one mile of track) uses 2 million plastic bottles, 9 million plastic bags and 10,000 scrap vehicle tires and the production and use of these ties eliminates the need to cut down approximately 750 trees.
"Our challenge is now and will continue to be to improve our production, and expand our customer base so that we can increase our profits even further thus benefiting our environment, our customers, our shareholders, our debt holders and our employees."
North American Technologies Group, Inc. through its wholly owned subsidiary TieTek(TM) produces high-performance railroad ties and other engineered products. TieTek uses its patented technology to process recycled plastic, automobile tires and mineral additives to manufacture engineered composite products that last longer and perform better than hardwood and/or concrete alternatives in structural applications. The Company's securities are quoted in the over-the-counter market under the symbol "NAMC". The Company's website is found at http://www.tietek.com. For a description of the financial results for the Company's Current Report see Form 10-QSB filed with the Securities and Exchange Commission on May 19, 2008.
This press release contains forward-looking statements involving risks and uncertainties. Statements in this press release that are not historical, including statements regarding management intentions, beliefs, expectations, representations, plans or predictions of the future are forward-looking statements within the meaning of the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. These risks include, but are not limited to, fluctuations in financial results, availability and customer acceptance of products and services, the impact of competitive products, services and pricing.
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