PLYMOUTH, Mich., July 16 /PRNewswire/ -- Simpson Industries, Inc.
(Nasdaq: SMPS) today reported sales and earnings for the second quarter ended
June 30, 1998. Net sales for the quarter were $128,704,000 or 16.7% higher
than sales of $110,274,000 in the prior year second quarter primarily due to
the inclusion of the European acquisition which took place in mid-1997.
General Motors work stoppages affected sales adversely by approximately $3
million in the second quarter.
Net earnings for the current quarter increased to $5,686,000 or $0.31 per
share diluted, compared with $5,418,000, or $0.30 per share, in the year
earlier period and $4,905,000, or $0.27 per share, in the first quarter of
1998. Second quarter operating earnings increased 11.2% to $10,957,000 from
$9,849,000 in 1997.
For the six months, net sales were $254,260,000, up 17.6% over 1997 first
half. Net earnings were $10,591,000 or 58 cents a share diluted, compared to
$9,805,000 or 54 cents a share diluted in the first six months of 1997.
"Our 1998 year-to-date new business awards are on target," said Roy E.
Parrott, Chairman and C.E.O. of Simpson Industries. "These business awards
are consistent with our plans for strong business growth in Years 2000/2001
and beyond", Parrott added.
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, and modular engine
assemblies and high-precision machined components. Simpson's manufacturing
units are located in the United States, Canada, Mexico, Brazil, 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)
Six Months Ended Three Months Ended
June 30 June 30
1998 1997 1998 1997
Net Sales $254,260 $216,148 $128,704 $110,274
Cost of products sold 225,781 192,292 113,848 97,234
GROSS PROFIT 28,479 23,856 14,856 13,040
Administrative and selling 6,462 6,223 3,417 3,191
Amortization of
intangible assets 940 -- 482 --
OPERATING EARNINGS 21,077 17,633 10,957 9,849
Interest and other
income - net (325) 526 (252) 107
Interest expense (4,945) (2,717) (2,502) (1,424)
EARNINGS BEFORE INCOME TAXES 15,807 15,442 8,203 8,532
Income taxes 5,216 5,637 2,517 3,114
NET EARNINGS $10,591 $9,805 $5,686 $5,418
BASIC EARNINGS PER SHARE $0.58 $0.54 $0.31 $0.30
DILUTED EARNINGS PER SHARE $0.58 $0.54 $0.31 $0.30
Cash dividends per share $0.20 $0.20 $0.10 $0.10
Basic weighted average
shares outstanding 18,297 18,117 18,416 18,133
Diluted weighted average
shares outstanding 18,419 18,173 18,550 18,184
Depreciation expense $12,132 $10,556 $6,430 $5,242
Capital expenditure $9,291 $17,699 $5,016 $10,996
Simpson Industries, Inc.
Condensed Consolidated Balance Sheets
(Dollar amounts in thousands)
June 30 December 31,
1998 1997
(Unaudited)
ASSETS
Cash & Cash Equivalents $3,553 $8,235
Other Current Assets 109,592 106,459
Total Current Assets 113,145 114,694
Property, Plant & Equipment - net 172,116 174,146
Other Assets & Intangible 56,189 52,708
Total Assets $341,450 $341,548
LIABILITIES & SHAREHOLDER'S EQUITY
Current Liabilities $68,776 $78,328
Long-Term Debt 117,573 118,564
Other Liabilities 29,099 26,784
Shareholder's Equity 126,002 117,872
Total Liabilities & Equity $341,450 $341,548
SOURCE Simpson Industries
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fax, 800-758-5804, ext. 107165
CONTACT:
Vinod Khilnani, Vice President & Chief
Financial Officer of Simpson Industries, 734-207-6200
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