Oilgear Updates Outlook for Third Quarter

    MILWAUKEE--Sept. 18, 2001--The Oilgear Company today updated its outlook for the third quarter of 2001. The firm also announced that it has suspended its regular quarterly dividend payment of $0.07 per share for the third quarter.
    Sales for the third quarter of 2001 are expected to be down slightly from the third quarter of 2000. Earnings per share for the third quarter of 2001 are expected to show a moderate loss before one-time charges, not expected to exceed $1,000,000, related to additional workforce reductions, discontinued products and closing operations. For the third quarter of 2000, Oilgear reported net sales of $22,717,000 and net earnings of $310,000 or $0.16 per share.
    "The lower sales expectations for the third quarter are the result of continued weak demand for hydraulic products, particularly in the U.S. market," said David A. Zuege, chairman and chief executive officer. "As a result of lower sales and earnings thus far in 2001, we have acted aggressively to reduce employment and operating costs. The one-time charges expected in the third quarter of 2001 reflect several additional actions aimed at reducing costs including further layoffs at our Milwaukee and Fremont, Nebraska, plants and expenses for early retirement and severance benefits. By June 30 we had reduced our U.S. workforce by 10% and expect to reduce it by another 10% this quarter," said Zuege.
    "Despite the weak outlook for U.S. hydraulic sales, we have started to see a few positive signs in our international and European operations, but those activities have not translated into sales contracts at this time. On the revenue side, while our results are down, we believe our performance is ahead of the industry and we feel we are maintaining or maybe even gaining market share," Zuege said.