CLEVELAND, Jan. 10 /PRNewswire-FirstCall/ -- Hawk Corporation (Amex:
HWK) announced today expected 2007 operating guidance for its friction
products and performance racing segments. All results provided assume the
completion of the sale of the Company's precision components segment which
was announced in December 2006. The sale is expected to be completed in the
first quarter of 2007. The 2007 operating results as presented do not
include or anticipate any acquisitions or other business combinations,
reinvestment of proceeds or a possible limited stock buy-back involving the
expected proceeds from the sale of the precision components segment sale.
(Logo: http://www.newscom.com/cgi-bin/prnh/20001129/HWKLOGO )
Based on the completion of the expected sale, Hawk is projecting
revenues from its continuing operations in 2007 to be between $217.0
million and $222.0 million. The Company expects that 2007 operating income
from its friction products and performance racing segments will be between
$11.0 million and $14.0 million. Depreciation and amortization for these
two operating segments is expected to be between $7.0 million and $8.0
million for 2007. All "corporate charges" that the Company expects to incur
such as occupancy costs associated with the Company's headquarter and other
corporate overhead have been fully allocated to the two remaining operating
segments and are included in the forecasted operating results. The Company
expects to announce its full year 2006 results on March 6, 2007.
Ronald E. Weinberg, Hawk's Chairman and CEO stated, "We look forward to
the opportunities available to us in the friction products and performance
racing segments in 2007. As a result of pricing actions and improvements in
our manufacturing processes, especially at our Tulsa operation, we expect
our continuing operations to show improvement in 2007. This expected
improvement in operating performance will be partially offset by the
reallocation of corporate charges to the friction products and performance
racing segments that were previously allocated to the Company's precision
components group. With the exception of the expected slowdown in the heavy
truck market in 2007, we expect all of our end markets to remain strong
during the year." Mr. Weinberg added, "The expected sale of our precision
components segment will provide us a number of opportunities to grow our
friction products and performance racing segments through possible
acquisitions as well as the acceleration of internal development projects.
In addition, we are considering reducing our outstanding debt levels and
deleveraging our balance sheet, as well as exploring the opportunity of a
limited stock buy-back."
The Company
Hawk Corporation is a leading worldwide supplier of highly engineered
products. Its friction products group is a leading supplier of friction
materials for brakes, clutches and transmissions used in airplanes, trucks,
construction equipment, farm equipment, recreational and performance
automotive vehicles. The Company's performance racing group manufactures
clutches and gearboxes for motor sport applications and performance
automotive markets. Headquartered in Cleveland, Ohio, Hawk has
approximately 1,100 employees at 11 manufacturing, research, sales and
administrative sites in 6 countries at its friction products and
performance racing operations.
Forward-Looking Statements
This press release includes forward-looking statements concerning sales
and operating earnings. These forward-looking statements are based upon
management's expectations and beliefs concerning future events. Forward-
looking statements are necessarily subject to risks, uncertainties and
other factors, many of which are outside the control of the Company and
which could cause actual results to differ materially from such statements.
These risks and uncertainties include, but are not limited to; the ability
of the Company to complete the sale of its precision components segment
under the terms and conditions as negotiated with the buyer; the Company's
ability to execute its business plan to meet its forecasted results from
continuing operations; the Company's vulnerability to adverse general
economic and industry conditions and competition; the impact on the
Company's gross profit margins as a result of changes in product mix; the
effect of the transfer of manufacturing to China and other lower wage
locations by other manufacturers who compete with the Company; the effect
on the Company's international operations of unexpected changes in legal
and regulatory requirements, export restrictions, currency controls,
tariffs and other trade barriers, difficulties in staffing and managing
foreign operations, political and economic instability, difficulty in
accounts receivable collection and potentially adverse tax consequences;
the effect of foreign currency exchange rates as the Company's non-U.S.
sales continue to increase; the effect of any interruption in the Company's
supply of raw materials or a substantial increase in the price of raw
materials; and, the continuity of business relationships with major
customers.
Actual results and events may differ significantly from those projected
in the forward-looking statements. Reference is made to Hawk's filings with
the Securities and Exchange Commission, including its annual report on Form
10-K for the year ended December 31, 2005, its quarterly reports on Form
10-Q, and other periodic filings, for a description of the foregoing and
other factors that could cause actual results to differ materially from
those in the forward-looking statements. Any forward-looking statement
speaks only as of the date on which such statement is made, and the Company
undertakes no obligation to update any forward-looking statement, whether
as a result of new information, future events or otherwise.
SOURCE Hawk Corporation
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Related links:
http://www.hawkcorp.com
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/20001129/HWKLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Ronald E. Weinberg, Chairman and CEO,
+1-216-861-3553, or Joseph J. Levanduski, CFO, +1-216-861-3553,
or Thomas A. Gilbride, Vice President - Finance, +1-216-861-3553,
all of Hawk Corporation
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