ST. LOUIS, May 7 /PRNewswire/ -- ESCO Electronics Corporation (NYSE: ESE)
today announced fiscal 1998 second quarter earnings of $3.24 million, or
$0.26 per share, a 17.1 percent increase over second quarter earnings in the
prior year of $2.77 million, or $0.23 per share. Operating profit margin
increased by a full percentage point compared with prior year.
Net earnings for the first half ended March 31, 1998, rose 18.2 percent to
$5.9 million, or $0.47 per share, from $4.9 million, or $0.40 per share, the
year before.
The increase in earnings for both periods was primarily attributable to
improved profitability in the Company's Filtration/Fluid Flow business.
Second quarter sales were $86 million compared with sales of $88.8 million
for the second quarter of last year. The decline was due to lower volume in
Defense sales at SEI. Sales for the first six months ended March 31, 1998,
were $164.1 million, or a 4.1 percent increase over the prior year sales of
$157.7 million for the same period. The acquisition of Filtertek contributed
to the sales increase, partially offset by the decline in Defense sales.
The Company also experienced an increase in new orders and backlog. New
orders for the second quarter of fiscal 1998 totaled $100.5 million, compared
with $95.5 million for the second quarter of the prior year. Orders for the
first six months of fiscal 1998 totaled $189.3 million, compared with
$152.6 million for the first six months of fiscal 1997. Backlog at March 31,
1998, was $253.4 million, compared with $238.9 million at December 31,1997.
Dennis J. Moore, Chairman and Chief Executive Officer, stated, "We are
very pleased to report that our operating margins continue to improve. For
the second quarter our operating margin increased to 8.5 percent, compared
with 7.5 percent in the second quarter of last year."
Mr. Moore continued, "We expect sales in the second half of fiscal 1998 to
be higher than first half, which should contribute to improved profitability."
The Company also announced that it has established a toll-free number
(1-888-622-ESCO) which will be available to shareholders effective
May 8, 1998. Through a menu selection, shareholders may hear the Company's
latest press release, stock price and other pertinent information. Through
the toll-free number, shareholders may also request a full text press release
via fax or mail. After the end of fiscal 1998, the Company will no longer
print/mail the traditional Quarterly Report to Shareholders. All shareholders
will continue to receive the Annual Report and Proxy Statement.
In making the announcement, Mr. Moore said, "With the new toll-free number
service, we will be able to communicate important Company information on a
more timely basis and at a cost savings to the Company and its shareholders."
Statements in this press release that are not strictly historical are
"forward-looking" statements within the meaning of the safe harbor provisions
of the federal securities laws. Investors are cautioned that such statements
are only predictions, and speak only as of the date of this release. Actual
results may differ materially due to risks and uncertainties which are
described in the Company's Form 10-K for fiscal year 1997 and on page 37 of
the 1997 Annual Report to Shareholders.
ESCO Electronics Corporation, headquartered in St. Louis, is a diversified
manufacturer of commercial and defense products and systems sold to customers
worldwide.
ESCO ELECTRONICS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Dollars in thousands)
March 31, September 30,
1998 1997
(unaudited)
Assets
Cash and cash equivalents $ 6,589 5,818
Receivables and unbilled costs, net 86,600 103,245
Inventories 82,089 45,110
Other current assets 3,477 2,794
Total current assets 178,755 156,967
Property, plant and equipment, net 95,968 96,532
Other assets 125,940 124,688
$ 400,663 378,187
Liabilities and Shareholders' Equity
Short-term borrowings and current
maturities of long-term debt $ 47,500 25,500
Other current liabilities 67,470 69,176
Total current liabilities 114,970 94,676
Other liabilities 27,110 28,548
Long-term debt 47,208 50,000
Shareholders' equity 211,375 204,963
$ 400,663 378,187
ESCO ELECTRONICS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended Six Months Ended
March 31, March 31,
1998 1997 1998 1997
Net sales $ 86,030 88,811 $164,107 157,710
Costs and expenses:
Cost of sales 61,434 66,384 117,482 118,323
Selling, general and
administrative
expenses 17,285 15,740 32,817 28,691
Interest expense 1,952 1,234 3,643 1,511
Other, net 647 1,069 1,718 1,799
Total costs and
expenses 81,318 84,427 155,660 150,324
Earnings before income
taxes 4,712 4,384 8,447 7,386
Income tax expense 1,472 1,617 2,597 2,437
Net earnings $ 3,240 2,767 $ 5,850 4,949
Earnings per share:
Basic $ .27 .23 $ .49 .42
Diluted .26 .23 .47 .40
SOURCE ESCO Electronics Corporation
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CONTACT:
Patricia K. Moore, Director, Investor
Relations of ESCO Electronics Corporation, 314-213-7277
NOTE TO EDITORS: For media inquiries, contact David P. Garino for
ESCO Electronics Corporations, 314-982-0551
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