PLYMOUTH, Mich., April 15 /PRNewswire/ -- Simpson Industries, Inc.
(Nasdaq: SMPS) today reported sales and earnings for the first quarter ended
March 31, 1998. Net sales for the quarter were $125,556,000, or 19% higher
than sales of $105,874,000 in the prior year first quarter. Current year
first quarter net earnings were $4,905,000, or $.27 per share fully diluted,
compared with $4,387,000, or $.24 per share in the year earlier period.
The first quarter sales increase was due largely to including the European
based vibration attenuation business, acquired from Cummins Engine Company on
June 29, 1997. Growth from new products launched in the latter half of 1997
and stronger mid-range and heavy duty diesel component sales compared to the
first quarter a year ago also contributed to the revenue increase.
First quarter operating earnings increased 30% to $10,120,000 versus
$7,783,000 in 1997. Operating earnings as a percent of sales reached 8.1% in
the first quarter of 1998 from 7.4% in the previous year. Net earnings were
in line with expectations for the quarter.
"The results from the strategic actions undertaken in 1997 have taken form
as we began 1998," said Roy E. Parrott, Chairman, President and C.E.O. of
Simpson Industries. "We're on track with the targeted actions already taken
and solidly optimistic that new business being prepared for launch this year
will continue to fuel our profitable growth," Parrott added. "
On April 3, 1998 Simpson Industries announced the acquisition of Tennessee
based Stahl International, a manufacturer of viscous dampers for diesel engine
applications with annual revenues of $4 million. On April 6, 1998, Simpson
Industries announced an agreement in principle with Fukoku Co Ltd., a Japanese
based manufacturer of vibration dampening and other technology based engine
products. The agreement will enable further expansion of Simpson's technical
development capabilities and manufacturing infrastructure worldwide.
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 South 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.
Simpson Industries, Inc.
Consolidated Statements of Operations (Unaudited)
(Dollar and share amounts in thousands, except per share data)
Three Months Ended
March 31
1998 1997
NET SALES $125,556 $105,874
Cost of products sold 111,933 95,058
GROSS PROFIT 13,623 10,816
Administrative and selling 3,045 3,033
Amortization of intangible assets 458 -
OPERATING EARNINGS 10,120 7,783
Interest and other income - net (73) 420
Interest expense (2,443) (1,293)
EARNINGS BEFORE INCOME TAXES 7,604 6,910
Income taxes 2,699 2,523
NET EARNINGS $4,905 $4,387
BASIC EARNINGS PER SHARE $0.27 $0.24
DILUTED EARNINGS PER SHARE $0.27 $0.24
Cash dividends per share $0.10 $0.10
Basic weighted average shares
outstanding 18,179 18,101
Diluted weighted average
shares outstanding 18,288 18,163
Depreciation expense $5,702 $5,314
Capital expenditure $4,275 $6,703
Simpson Industries, Inc.
Condensed Consolidated Balance Sheets
(Dollar amounts in thousands)
March 31, December 31,
1998 1997
(Unaudited)
ASSETS
Cash & Cash Equivalents $15,606 $8,235
Other Current Assets 113,705 106,459
Total Current Assets 129,311 114,694
Property, Plant & Equipment - net 172,752 174,146
Other Assets & Intangible 51,898 52,708
Total Assets $353,961 $341,548
LIABILITIES & SHAREHOLDER'S EQUITY
Current Liabilities $86,443 $78,328
Long-Term Debt 118,468 118,564
Other Liabilities 27,970 26,784
Shareholder's Equity 121,080 117,872
Total Liabilities & Equity $353,961 $341,548
SOURCE Simpson Industries, Inc.
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Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 107165
CONTACT:
Vinod Khilnani, Vice-President & Chief
Financial Officer, 734-207-6200, or Richard J. Koslowski,
Manager, Planning & Analysis, 734-207-6200, both of Simpson
Industries
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