AUBURN — Panolam Industries, parent company of Pioneer Plastics, continued to lose money this year, according to the company’s quarterly financial report.

Net sales for the laminate manufacturer were down to $67 million between March and June  2009 compared to $99.3 million for the same period in 2008.

The company’s sales for the first half of 2009 were $130.9 million, compared to $200.5 million in 2008. Gross profits dropped from $39.5 million in 2008 to $17.6 million so far in 2009.

The company blamed a slow housing and credit economy on the low revenues — especially a 31 percent decrease in high pressure laminates sales.  High pressure laminates, used for counter tops and bowling lanes, are manufactured at two Panolam-owned plants: Pioneer in Auburn and a plant in Hampton, S.C. Laminate sales account for 89 percent of the company’s revenues.

The
company laid off 48 employees — about 16 percent of its local work
force — at the Auburn plant in December. Officials blamed the
layoffs on a downturn in the national housing industry.

The company announced a tentative agreement
with shareholders this summer to restructure its debt and
eliminate $16 million in annual credit payments. Negotiations to complete that agreement have not been settled, according to the quarterly report.

The company could be forced into bankruptcy if it cannot restructure its debt, according to the quarterly report.

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