CLEVELAND, April 14 /PRNewswire-FirstCall/ -- Hawk Corporation (Amex:
HWK) announced today that its Board of Directors has authorized the Company
to sell its performance racing segment. The performance racing segment,
consisting of Quarter Master Industries, Inc. and Tex Racing Enterprises,
Inc., engineers, manufactures and markets premium branded clutch,
transmission and driveline systems for the performance racing market. The
segment reported net sales of $12.8 million for the year ended December 31,
2007 accounting for 5.6% of the Company's total net sales for the year. The
Company will retain its Hawk Performance(R) brake business which will
remain a part of its friction products segment.
(Logo: http://www.newscom.com/cgi-bin/prnh/20001129/HWKLOGO )
Ronald E. Weinberg stated, "This announcement is in keeping with our
strategy of focusing on our friction businesses. We are a world leader in
friction technology and we see many opportunities to which we should direct
our energies and attention."
The Company is currently evaluating the impact that the sale of the
performance racing segment will have on the Company's financial statements
as well as to its previously announced 2008 financial guidance. Hawk will
reflect the performance racing segment as a discontinued operation in its
March 31, 2008 financial results. The Company is in discussions with
several parties and, cannot, at this time, provide the terms of a possible
transaction.
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 and mining equipment, farm equipment, recreational and
performance automotive vehicles. The Company's performance racing group
manufactures clutches and gearboxes for motorsport applications and
performance automotive markets. Headquartered in Cleveland, Ohio, Hawk has
approximately 1,150 employees at 13 manufacturing, research, sales and
administrative sites in 7 countries.
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
Company's ability to sell its performance racing segment on a timely basis
and at terms favorable to the Company; the Company's ability to execute its
business plan to meet its forecasted results from continuing operations;
the costs and outcome of the ongoing SEC and DOJ investigations; decisions
by the Company regarding the use of proceeds from the sale of its precision
components segment, including acquisition opportunities; the impact on the
Company's gross profit margins as a result of changes in product mix; the
Company's vulnerability to adverse general economic and industry conditions
and competition; work stoppages by union employees; ongoing capital
expenditures and investment in research and development; compliance with
government regulations; compliance with environmental and health and safety
laws and regulations; the effect of any interruption in the Company's
supply of raw materials or a substantial increase in the price of raw
materials; 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;
reliance for a significant portion of the Company's total revenues on a
limited number of large organizations and the continuity of business
relationships with major customers; the loss of key personnel; and control
by existing preferred stockholders.
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, 2007, 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.
Hawk Corporation is online at: http://www.hawkcorp.com/
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:
Joseph J. Levanduski, +1-216-861-3553, or
Thomas A. Gilbride, +1-216-861-3553, both of Hawk Corporation; or
Investor Relations, John Baldissera of BPC Financial Marketing,
+1-800-368-1217
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