13.3 % 20.5 %
The following factors were the primary drivers of the three- and six-month year-over-year changes:
• Market conditions. Declining demand for pit liners in our energy market
beginning in the second half of fiscal 2013 has rebounded slightly during
the second quarter of fiscal 2014, marking signs that the energy market is
stabilizing. Environmental and water conservation projects increase demand
for the division's containment liners in the geomembrane market and provide sales growth opportunities for these products. Beginning in the second quarter of fiscal 2014, demand has also strengthened for agricultural barrier films used in high value crop production.
• Sales volume and selling prices. Second quarter net sales were up 1% to
million. Selling prices were down about 4% as compared to the prior year
quarter. First half fiscal 2014 net sales were down
million. Lower energy market sales, primarily during the first quarter,
drove the decline - down
prior year included sales for a significant geomembrane reservoir project
period were down 3% and 5%, respectively, compared to the prior-year periods.
• Gross margin decrease. For the three- and six-month periods, margins