PLYMOUTH, Mich., Jan. 29 /PRNewswire/ -- Simpson Industries, Inc.
(Nasdaq: SMPS) today announced record sales of $496 million and net earnings
of $14.8 million for the year ended December 31, 1998.
Fourth quarter net sales were $132,143,000, 7.4% higher than year earlier
sales of $123,043,000. The increase reflected stronger demand from North
American automotive and heavy-duty customers. European sales were also robust
especially due to the strength of the French markets.
Operating earnings for the fourth quarter reached $10,233,000, an increase
of 34.7% from the fourth quarter of 1997, excluding the one-time pre-tax
charge of $2.5 million announced earlier for headcount reduction.
Net earnings in the fourth quarter of 1998 were $3,235,000, or $0.18 per
share diluted, which included a one-time pre-tax charge of $2,500,000
($1,900,000 after tax or $0.10 per share diluted) for headcount reductions.
Excluding this one-time charge, net earnings were $5,135,000 ($0.28 per share
diluted), a 42.2% increase over the fourth quarter 1997 earnings of $3,611,000
($0.20 per share diluted).
For the year, net sales were $496,419,000, an increase of 9.9% over 1997
net sales of $451,518,000. Strong revenue growth was achieved despite General
Motors work stoppages, which adversely affected Simpson's second and third
quarter sales. Full year benefit of the Holset V.A. acquisition, which was
completed in mid-1997, combined with stronger NVH and Engine/Heavy Duty
segments contributed to healthy revenue growth in 1998. Net earnings were
$14,755,000 or $0.80 per share diluted in 1998 versus $10,079,000 or $0.55 per
share diluted in 1997. Excluding the one-time after-tax charges of $1,900,000
and $5,568,000 in 1998 and 1997, respectively, net earnings were $16,655,000
(or $0.91 diluted) in 1998 versus $15,647,000 (or $0.86) in 1997.
"1998 was an especially challenging year for Simpson due to the strike at
General Motors and implementation of our plant consolidation activities
announced in 1997," said Roy E. Parrott, Chairman and Chief Executive Officer
of Simpson Industries. "However, with recent restructuring initiatives in
place and strong new business awards, Simpson is poised to achieve strong
financial results over the next several years." added Mr. Parrott.
Simpson Industries supplies powertrain and chassis products to original
equipment manufacturers in the worldwide automotive and medium and heavy-duty
diesel engine markets. Simpson's products are focused in four groups: noise,
vibration and harshness; wheel-end and suspension; modular engine assemblies
and high-precision machined components. Simpson's manufacturing units are
located in the United States, Canada, Mexico and Brazil. European and Asian
operations are located in England, France, Spain and Korea.
Certain statements in this press release may be "forward-looking
statements" under the Securities Exchange Act of 1934. Statements regarding
future operating performance, new programs expected to be launched and other
future prospects and developments are based on current expectations and
involve certain risks and uncertainties that could cause the actual results
and developments to differ materially from the forward-looking statements.
Potential risks and uncertainties include such factors as demand for the
Company's products, pricing and other actions taken by the Company.
To receive a copy of this and other Simpson press releases by fax, please
call Company News-On-Call at 800-758-5804 - extension 107165, or you can
access the information via the Internet at http://www.prnewswire.com
Simpson Industries, Inc.
Consolidated Statements of Operations (Unaudited)
(Dollar and share amounts in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31 December 31
1998 1997 1998 1997
Net Sales $132,143 $123,043 $496,419 $451,518
Cost of products sold 117,401 111,366 446,914 406,513
GROSS PROFIT 14,742 11,677 49,505 45,005
Administrative and selling 4,011 3,614 13,397 13,152
Amortization of intangible
assets 498 467 1,962 934
Restructure charge/
Plant closings 2,500 -- 2,500 8,769
OPERATING EARNINGS
- Excl. one-time charge 10,233 7,596 34,146 30,919
- As Reported 7,733 7,596 31,646 22,150
Interest and other
income -- net (283) (208) 296 524
Interest expense (2,290) (2,357) (9,588) (7,451)
EARNINGS BEFORE
INCOME TAXES 5,160 5,031 22,354 15,223
Income taxes 1,925 1,420 7,599 5,144
NET EARNINGS
- Excl. one-time charge $5,135 $3,611 $16,655 $15,647
- As Reported $3,235 $3,611 $14,755 $10,079
BASIC EARNINGS PER SHARE
- Excluding one-time charge $0.28 $0.20 $0.91 $0.86
- As Reported $0.18 $0.20 $0.81 $0.56
DILUTED EARNINGS PER SHARE
- Excluding one-time charge $0.28 $0.20 $0.91 $0.86
- As Reported $0.18 $0.20 $0.80 $0.55
Cash dividends per share $0.10 $0.10 $0.40 $0.40
Basic weighted average
shares outstanding 18,226 18,130 18,285 18,123
Diluted weighted average
shares outstanding 18,265 18,241 18,374 18,202
Depreciation expense $6,380 $5,928 $24,153 $22,493
Capital expenditure $4,677 $6,604 $19,571 $28,977
Simpson Industries, Inc.
Condensed Consolidated Balance Sheets
(Dollar amounts in thousands)
December 31, December 31,
1998 1997
(Unaudited)
ASSETS
Cash & Cash Equivalents $6,145 $8,235
Other Current Assets 108,394 106,459
Total Current Assets 114,539 114,694
Property, Plant &
Equipment - net 169,885 174,146
Other Assets & Intangible 56,130 52,708
Total Assets $340,554 $341,548
LIABILITIES & SHAREHOLDER'S EQUITY
Current Liabilities $82,343 $78,328
Long-Term Debt 105,534 118,564
Other Liabilities 28,109 26,784
Shareholder's Equity 124,568 117,872
Total Liabilities & Equity $340,554 $341,548
SOURCE Simpson Industries, Inc.
 back to top
Company News On-Call:
http://www.prnewswire.com/comp/107165.html or fax,
800-758-5804, ext. 107165
CONTACT:
Vinod Khilnani, Vice-President & Chief
Financial Officer of Simpson Industries, 734-207-6200
|
