Raytech Corporation Announces 2000 Results
SHELTON, Conn.--March 27, 2001--Raytech Corporation today reported worldwide sales of $239.5 million, down $12 million from the 1999 amount of $252 million.Operating income for 2000 of $27.2 million was down slightly from the record $27.5 million earned in 1999.
In the second quarter of 2000, the Company recorded a charge of $7.2 billion related to the bankruptcy process. This charge, accounted for as liabilities subject to compromise, represents an estimate of the aggregate amount of allowed claims, substantially all of which will be discharged at the effective date of the Bankruptcy as part of the settlement with its creditors and equity holders with respect to the Plan of Reorganization. The plan was confirmed in September 2000 and is expected to become effective in the second quarter of 2001.
Albert A. Canosa, President and Chief Executive Officer, stated, "The major focus of management during the course of the past twelve months has been on maintaining profitability in the face of extremely competitive market conditions. In 2000, the intensity of pricing pressures became more severe than we have ever seen as customers across-the-board looked to suppliers to absorb further price reductions in already tight margins. The year ended December 31, 2000 was one of the most challenging in recent memory as we managed to temper a decline in revenues from worldwide operations, and to maintain operating income at or near 1999's record level."
Due to the effects of recording the charges related to the liabilities subject to compromise, the net loss for the Company for 2000 was $(7,058,978) compared to net income of $16,364 in 1999.
Raytech Corporation is a global manufacturer of energy absorption and power transmission products, as well as custom engineered components.
The Company has been under the protection of the U.S. Bankruptcy Court relating to asbestos personal injury and environmental liabilities since March 1989.
RAYTECH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (000's omitted, except share data) Comparative results for the quarter ended and full year are as follows: For the Quarter Ended Dec. 31, 2000 Jan. 2, 2000 Net sales $ 54,180 $ 56,317 Net (loss) income $ (2,942) $ 3,159 Basic (loss) earnings per share: (Loss) earnings per share $ (.84) $ .91 Weighted average shares 3,519,313 3,476,464 Diluted (loss) earnings per share: (Loss) earnings per share $ (.84) $ .89 Weighted average shares 3,519,313 3,544,726 For the Year Ended Dec. 31, 2000 Jan. 2, 2000 Net sales $239,532 $251,966 Net (loss) income $(7,058,978) $ 16,364 Basic (loss) earnings per share: (Loss) earnings per share $(2,015.40) $ 4.76 Weighted average shares 3,502,522 3,439,017 Diluted (loss) earnings per share: (Loss) earnings per share $(2,015.40) $ 4.65 Weighted average shares 3,502,522 3,518,884