Coastcast Corporation reported sales for the fourth quarter of 2002 as compared to the same period in 2001, were $8,109,000 vs. $24,796,000, net loss was ($2,349,000) vs. ($2,489,000), and diluted loss per share was ($0.31) vs. ($0.33).

For the year ended December 31, 2002 as compared to 2001, sales were $62,446,000 vs. $115,480,000, net loss was ($10,384,000) vs. ($2,290,000), and diluted loss per share was ($1.36) vs. ($0.30).

Commenting on the past year and quarter, Hans Buehler, Chairman and CEO, stated: “It was the most difficult time in the history of the company. Because our business contracted so dramatically, we were compelled to make commensurate reductions in our facilities and work force. As a result, many trusted employees are no longer with us. Most had been with the company for many years and some longer than twenty years. Those changes are painful to all of us.

“I now believe that the worst is behind us. We expect a slow and gradual recovery. We have been able to build confidence with our customers, evidenced by receipt of contracts for new programs. That is very important to our future. Our restructuring has resulted in a more efficient organization and we expect to be a more cost-effective producer. All this causes us to be cautiously optimistic in viewing what is ahead of us.

“We still anticipate losses for the early periods of this year, but expect them to narrow and turn to a profit as our anticipated volume increases later this year.”

Coastcast Corporation
Financial Highlights
($ in 000s, except share data)

Statements of Operations Summary (Unaudited)

Three Months Ended December 31,                      2002       2001

Sales                                               $8,109    $24,796
Cost of sales                                       10,586     27,000
Gross loss                                          (2,477)    (2,204)
Selling, general & administrative expense              964      1,482
Impairment of fixed assets                             271          -
Restructuring charges                                  (36)         -
Loss from operations                                (3,676)    (3,686)
Other income, net                                       59         55
Loss before benefit from income taxes               (3,617)    (3,631)
Benefit from income taxes                           (1,268)    (1,142)
Net loss                                           $(2,349)   $(2,489)



Year Ended December 31,                               2002       2001

Sales                                              $62,446   $115,480
Cost of sales                                       60,539    112,266
Gross profit                                         1,907      3,214
Selling, general & administrative expense            5,211      6,800
Impairment of fixed assets                           3,745          -
Restructuring charges                                3,567          -
Loss from operations                               (10,616)    (3,586)
Other income, net                                      139        396
Loss before (benefit) provision for income taxes   (10,477)    (3,190)
(Benefit) provision for income taxes                   (93)      (900)
Net loss                                          $(10,384)   $(2,290)