Sheldahl Inc. Reports Drop In Third Quarter 2001 Earnings
NORTHFIELD, Minn.--Nov. 13, 2001--Sheldahl, Inc. today announced results for the third quarter ending September 28, 2001.
The company's net sales for the period were $25.7 million, a drop of $4.5 million, or 15 percent compared with second quarter 2001 sales. Earnings before income taxes and depreciation and amortization (EBITDA), excluding the one time restructuring and severance expenses, showed a loss of $5.0 million in the third quarter.
"While Sheldahl had made substantial progress on its plan to return the business to profitability, we were impacted by a further reduction in sales from our automotive and electronic packaging businesses during the quarter," said Benoit Pouliquen, President and Chief Executive Officer of Sheldahl. "As a result, we took the difficult action of reducing the company's workforce by a further 20 percent and making additional cuts in support costs. These steps are expected to result in an additional $4 million per quarter expense reduction going forward."
The company has said it has taken actions over the last nine months to improve its working capital. Inventories have been reduced by $5.8 million or 23 percent, and receivables are down by $2.9 million or 17 percent. The company has attributed these reductions to more stringent financial controls that it has applied over that period.
"Monthly sales for the three-month period ending October 2001 lead us to believe that sales have stabilized," said Mr. Pouliquen. "However, we remain vigilant and prepared to take any necessary actions to preserve the company's long-term viability. With the steps that have been taken we are much closer to achieving profitability. As market conditions improve, we believe the company is positioned for sustained profitable operations."
About Sheldahl
Sheldahl, Inc. is a leading producer of high-density substrates, high-quality flexible printed circuitry, and flexible laminates primarily for sale to the automotive, electronics and data communications markets. The company, which is headquartered in Northfield Minnesota, has operations in Northfield; Longmont, Colorado; Endicott, New York; Toronto, Ontario, Canada; and Chihuahua, Chih., Mexico. Sheldahl's Common Stock trades on the Nasdaq National Market tier of the Nasdaq Stock Market under the Symbol: SHEL. Sheldahl news and information can be found on the World Wide Web at http://www.sheldahl.com.
The discussion above contains statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements by their nature involve substantial risks and uncertainties as described by Sheldahl's periodic filings. Actual results may differ materially depending on a variety of factors. Information with respect to the risks and uncertainties faced by Sheldahl may be found in, and the prior discussion is qualified in its entirety by, the Risk Factors contained in the Company's filings with the Securities and Exchange Commission including Sheldahl's Annual Report, Form 10-K for the fiscal year ended December 29, 2000, and other SEC filings. Sheldahl does not undertake any obligation to update any such factors or to publicly announce developments or events relating to the matters described herein.