PR: Far West's 2nd Quarter Up
Edited by John Stouffer
(8-25-98)

(Press Release, August 18)-Traditionally the weakest quarter for our industry, Far West is pleased to report continued profitability in the second quarter of 1998 with sales up ten percent over the same period last year.

Second quarter net income is lower resulting from general weakness in the value of the Canadian dollar affecting the cost of foreign materials purchased, income tax expense in the second quarter of 1998 which was not applicable for this period in 1997 and expenses associated with the Concept snowboard clothing division, which will not have any significant revenue until the third quarter.

For the six-month period ended June 30, 1998 sales of 4.193-million dollars [Canadian] were up by twenty percent compared to 3.482-million dollars for the same period in 1997. Net income was 84,167 dollars compared to 136,266 dollars the year before.

Production and finished products ready for shipment are well ahead of last year's schedule and should result in timely shipments and provide the opportunity for significant repeat order business. Orders received for shipping in the third and fourth quarters are now in excess of orders received for the same period last year. However, total annual sales normally include significant repeat orders received from customers in the last half of the year. Repeat orders can be affected by both weather and economic conditions. The company continues to monitor economic conditions that currently indicate some weakness in specific areas in Canada.

Far West Industries Inc. (TSE, VSE-FWT) designs, manufactures, and distributes quality sportswear, Concept snowboard apparel and Gore-Tex outerwear. Located in Vernon, British Columbia Far West's products are sold in Canada, the United States, Japan, New Zealand, and Europe.

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