CLEVELAND, July 13 /PRNewswire-FirstCall/ -- Hawk Corporation (Amex: HWK)
expects to report record second quarter 2004 net sales from continuing
operations of $63.4 million, a $3.1 million increase over the Company's
previous record quarterly net sales set in the first quarter of 2004. The
anticipated $63.4 million in net sales represents a 21% increase from the
comparable prior year period.
(Logo: http://www.newscom.com/cgi-bin/prnh/20001129/HWKLOGO )
Hawk expects that its friction segment net sales will increase by 24%, and
its racing segment by 21%, while its precision component segment will report
an increase in net sales of approximately 16% when compared to second quarter
2003 results.
Based on the strength of its revenue growth, Hawk believes that its income
from continuing operations will increase 22% to 25% for the second quarter of
2004 compared to the prior year period. Hawk will release its financial
results for the second quarter on August 3, 2004.
The majority of the markets served by Hawk are experiencing improvement
over 2003 with the construction, agriculture and heavy truck markets posting
significant gains. In addition to economic improvements, Hawk's results are
being positively influenced by market share gains as a result of the Company's
continued introduction of improved materials into its core product areas.
Also adding to the strength of its expected revenue growth is the previously
announced nationwide rollout of performance brake pads at Pep Boys, which
accounted for $1.0 million in second quarter 2004 revenues.
In light of the stronger than expected first half results, Hawk is
increasing its previously announced guidance for full year 2004 net sales from
continuing operations from 6% to a revised range of 10% - 13% above full year
2003 levels.
The Company also anticipates income from continuing operations for the
full year 2004 to increase by 55% to 60%. This increase includes $2.1 million
of costs expected to be incurred in 2004 for the relocation of a production
plant to a new facility currently under construction in Tulsa, Oklahoma. This
range represents a revision to the Company's previous guidance of 10% to 15%
issued in April, 2004. This significant increase in income from continuing
operations reflects the operating leverage and operating efficiencies that the
Company is experiencing as a result of sales volume improvements.
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 16 manufacturing, research, sales and
administrative sites in 4 countries at its continuing operations.
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's business 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 risks and uncertainties include, but are not limited to:
- 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 start-up metal injection molding operation;
- the timely completion of the construction of the new facility in our
friction products segment;
- the ability to hire and train qualified people at the new facility;
- the ability to transfer production to the new facility and commence
production at the new facility without causing customer delays or
dissatisfaction;
- the ability to achieve the projected cost savings at the new facility,
including whether the cost savings can be achieved in a timely manner;
- higher than anticipated costs related to the relocation of the friction
products segment facility; and
- the effect of any interruption in our supply of raw materials or a
substantial increase in the price of any of the raw materials.
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, 2003, 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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CONTACT:
Ronald E. Weinberg, Chairman, CEO and
President, +1-216-861-3553, or Thomas A. Gilbride, Vice President
- Finance, +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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