PLYMOUTH, Mich., Oct. 15 /PRNewswire/ -- Simpson Industries, Inc.,
(Nasdaq: SMPS) today reported a 140 percent earnings gain on a 14 percent
sales increase for the third quarter ended September 30, 1996.
Net sales in the quarter were $98,228,000, compared to year earlier sales
of $86,338,000. Operating earnings were $5,760,000, up from $3,405,000 in
1995. Net earnings were $3,443,000, or 19 cents a share, advancing from
$1,435,000, or eight cents a share, last year.
For the nine months, net sales were four percent ahead of the year-earlier
period at $309,698,000, up from $297,174,000. Operating earnings, at
$24,210,000 exceeded the year-earlier $22,433,000 by nine percent. Net
earnings rose to $13,371,000, or 74 cents a share, up from $11,909,000 or
66 cents a share.
"Strong production levels contributed to Simpson's sales and earnings
gains," said Roy E. Parrott, president and chief executive officer. "We
continued to gain market share with a 14 percent sales increase on an
11 percent increase in North American light vehicle production. Volume to our
diesel engine customers is up more than 16% through the first nine months of
the year.
"At the same time, we continue to improve operating efficiencies and
benefit profitability," said Mr. Parrott. "For instance, several major
production lines have dramatically improved their performance. And our
Mexican facility, which we purchased just a year ago, has been solidly
profitable all year.
"Our Technical Center, a cornerstone of our strategic growth, will open
officially this week. It reflects our commitment to the engineering and
design capabilities that our customers want.
"We are nearing another important milestone. Eight of Simpson's twelve
facilities have qualified for QS9000 registration, and we expect to reach
100 percent before the end of 1996. This will be a requirement for doing
business with the OEMs in a few years; but we believe it's important that
we're in the lead on this," Mr. Parrott said.
The company also said it has reason to believe that a portion of recently
announced new business awards may be in question. Simpson said that, while
the order met its criteria for confirmed new business, in this case, the order
may have been placed prematurely. Correcting last week's announcement,
confirmed new business through September 30 stands at more than $40 million.
Overall, Simpson said that it is "highly confident" that it is on track
for its long term financial goals and that new business prospects remain
excellent.
Simpson Industries supplies powertrain and chassis products to original
equipment manufacturers in the global automotive and diesel engine markets.
The company's products are focused in four groups: noise, vibration and
harshness; wheel-end and suspension, modular engine assemblies and high
precision machined parts.
Simpson's 11 manufacturing units are located throughout the Midwest, as
well as North Carolina, Ontario and Mexico.
Nine Months Ended Three Months Ended
September 30 September 30
1996 1995 1996 1995
Net Sales $309,698 $297,174 $98,228 $86,338
Costs and expenses:
Cost of products sold 276,131 266,256 89,310 79,713
Administrative and
selling 9,357 8,485 3,158 3,220
285,488 274,741 92,468 82,933
OPERATING EARNINGS 24,210 22,433 5,760 3,405
Investment and other
income - net 851 844 692 48
Interest expense (4,045) (4,219) (1,321) (1,357)
EARNINGS BEFORE INCOME TAXES 21,016 19,058 5,131 2,096
Income taxes 7,645 7,149 1,688 661
NET EARNINGS $13,371 $11,909 $3,443 $1,435
NET EARNINGS PER SHARE $0.74 $0.66 $0.19 $0.08
Cash dividends per share $0.30 $0.30 $0.10 $0.10
Average number of
common and common
equivalent shares 18,103,242 18,036,768 18,117,073 18,054,643
SOURCE Simpson Industries, Inc.
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CONTACT:
Kathryn L. Williams, Vice President and Chief
Financial Officer of Simpson Industries, 313-207-6200
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