CLEVELAND, April 5 /PRNewswire-FirstCall/ -- Hawk Corporation (Amex: HWK)
announced today that it expects to report record first quarter 2005 net sales
of approximately $72.5 million, an increase of approximately 20% over net
sales of $60.3 million reported in the first quarter of 2004.
(Logo: http://www.newscom.com/cgi-bin/prnh/20001129/HWKLOGO )
In Hawk's previous guidance, the Company anticipated its net sales to
increase by 13% to 15% for the first quarter of 2005. The majority of markets
served by Hawk continue to outperform its previous expectations, including
construction and mining equipment, heavy-duty truck, fluid power and
aerospace.
As a result of these improved net sales expectations, Hawk is also
increasing its previously announced guidance for first quarter 2005 income
from operations from an increase compared to the first quarter of 2004 of 5%
to 7% to a revised range of 9% to 12%. Based on this new expectation, Hawk
anticipates the range of income from operations in the first quarter of 2005
will increase to $6.2 million to $6.4 million compared to income from
operations of $5.7 million in the first quarter of 2004.
At this time Hawk is not prepared to alter its full year guidance and is
reaffirming its full year guidance of a 10% to 12% increase in 2005 net sales
as compared to 2004 results of $241.2 million, and a 7% to 9% increase in 2005
income from operations as compared to 2004 results of $17.3 million. This
range includes restructuring charges of $4.0 million to $4.5 million.
Ronald E. Weinberg, Hawk's Chairman and CEO, stated, "We are very pleased
with the strength of our expected first quarter results, and look upon it as
the first step in what we expect to be an excellent year. However, at this
time we feel it would be premature to raise our guidance for the year."
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 and recreational vehicles. Through its
precision components group, the Company is a leading supplier of powder metal
and metal injected molded components for industrial, consumer and medical
applications, including pump, motor and transmission elements, lawn and garden
and telecommunication equipment. The Company's performance racing group
manufactures clutches and gearboxes for motorsport applications and
performance automotive markets. Headquartered in Cleveland, Ohio, Hawk has
approximately 1,600 employees and 17 manufacturing, research, sales and
administrative sites in 6 countries.
Forward-Looking Statements
This press release includes forward-looking statements concerning sales,
market share, projections of revenues, earnings and segment performance and
other statements that involve risks and uncertainties. These forward-looking
statements are not historical facts. Rather, the forward-looking statements
are based upon management's assumptions, expectations and beliefs concerning
future events about the Company and the industry and markets in which it
operates, many of which are outside of the control of the Company and which
could cause actual results to differ materially from such statements. These
risk and uncertainties include, but are not limited to:
- the effect of any interruption in our supply of raw materials or a
substantial increase in the price of any of the raw materials;
- our ability to effectively utilize all of our manufacturing capacity as
the industrial and commercial end-markets we serve gradually improve or
if improvement is not achieved as we anticipate;
- our ability to generate profits at our facilities in China and to earn
a profit at our metal injection molding operation;
- the effect of competition by manufacturers using new or different
technologies;
- the effect on our 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;
- the effect of fluctuations in foreign currency exchange rates as our
non-U.S. sales continue to increase; 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, 2004, 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
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AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Ronald E. Weinberg, Chairman, CEO and
President, or Thomas A. Gilbride, Vice President - Finance, of
Hawk Corporation, +1-216-861-3553; or Investor Relations, John
Baldissera of BPC Financial Marketing, +1-800-368-1217
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