MSX International Announces Second Quarter 2001 Financial
Results
AUBURN HILLS, Mich., Aug. 10 MSX International generated
sales of $242 million for the second quarter of 2001, a 10% decrease compared
to $270 million in sales during the second quarter of 2000. Sales for the
first half of fiscal 2001, which ended July 1, 2001, decreased 4% from $518
million in fiscal 2000 to $499 million in fiscal 2001.
Sales in the second quarter were impacted by reduced activity in the
automotive and telecommunications sectors, and a $6 million net reduction due
to adverse exchange rate movements.
Operating income for the second quarter of 2001 was $12.3 million compared
to operating income of $15.6 million in 2000, a 21% decline. As a result, net
income decreased by $1.9 million from $4.1 million in the second quarter of
2000 to $2.2 million in the current quarter. The decline in operating and net
income was due to reduced sales volume and lower gross profit as a percentage
of sales, which was partially offset by reductions in accrued incentive
compensation. The gross profit percentage was impacted by reduced volumes,
primarily in engineering operations, by an unfavorable sales mix in the IT
staffing business, and by additional operating costs.
Thomas Stallkamp, vice chairman and chief executive officer, commented,
"In recent months, volatility in automotive development programs and in the
telecommunications industry have impacted our performance. As we focus on
achieving results through a soft year, the longer term prospects for our
service offerings remain encouraging. We made several key appointments to
enhance the development and delivery processes of our service platforms for
collaborative engineering, supply chain management, quality relationship
management and human capital management."
MSX INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
for the fiscal quarters and fiscal six months ended July 1, 2001
and July 2, 2000
Fiscal Quarter Ended Fiscal Six Months Ended
July 1, July 2, July 1, July 2,
2001 2000 2001 2000
(in thousands)
Net sales $241,921 $269,512 $498,558 $517,477
Cost of sales 209,424 230,913 433,869 443,718
Gross profit 32,497 38,599 64,689 73,759
Selling, general and
administrative
expenses 18,685 21,642 39,928 41,729
Amortization of goodwill
and other intangibles 1,508 1,398 3,112 2,500
Operating income 12,304 15,559 21,649 29,530
Interest expense, net 7,556 7,659 14,484 14,570
Income before income taxes,
minority interests, and equity
in net losses
of affiliates 4,748 7,900 7,165 14,960
Income tax provision 1,946 3,222 2,961 6,150
Less minority interests and equity
in net losses of affiliates,
net of taxes 548 548 750 466
Net income $2,254 $4,130 $3,454 $8,344