Raytech Corporation Announces Second Quarter Results for 2003
SHELTON, Conn.--Aug. 1, 20033, 2003--Raytech Corporation today announced a net loss for the thirteen-week period ended June 29, 2003 amounting to $1.5 million or $.04 loss per basic share as compared to net income of $1.1 million or $.03 per basic share for the same period in the prior year. Raytech recorded a net loss of $1.6 million for the twenty-six-week period ended June 29, 2003 or $.04 loss per basic share compared to net income of $2.4 million or $.06 per basic share for the same period in the prior year. The loss for both the thirteen-week period and the twenty-six-week period was due to a charge for environmental cleanup in Indiana of $1.8 million taken in the second quarter of 2003.Worldwide net sales for the thirteen-week period ended June 29, 2003 of $54.1 million compares to $55.3 million for the same period in the prior year, a decrease of $1.2 million or 2%. The reduced sales reflect the softness in the domestic OEM business for the Company and the aftermarket business, offset by increased sales in the foreign OEM business. Worldwide net sales for this twenty-six-week period ended June 29, 2003 of $109.8 million compares to $108.0 million for the same period in the prior year, an increase of $1.8 million or 2%.
The Company recorded an operating loss for the thirteen-week period ended June 29, 2003 of $.4 million compared to operating income of $2.9 million for the same period in the prior year, a decrease of $3.3 million. The operating income for the twenty-six-week period ended June 29, 2003 of $.2 million compared to operating income of $5.8 million for the same period in 2002. The decrease in operating profit reflects the reduced gross margin in both periods. The Company has implemented cost reduction programs, which are focused on improving the gross margins.
Raytech Corporation is a recognized world leader in the production of wet and dry clutch, power transmission and brake systems as well as specialty engineered polymer matrix composite products and related services for vehicular applications, including automotive OEM, heavy duty on-and-off highway vehicles and aftermarket vehicular power transmission systems. Through three technology and research centers and six manufacturing operations worldwide, Raytech develops and delivers energy absorption, power transmission and custom-engineered components focusing on niche applications where its expertise and technological excellence provide a competitive edge.
Raytech Corporation, headquartered in Shelton, Connecticut, operates manufacturing facilities in the U.S., Germany, England and China as well as technology and research centers in Michigan, Indiana and Germany. The Company's operations are strategically situated in close proximity to major customers and within easy reach of geographical areas with demonstrated growth potential.
Raytech common stock is listed on the New York Stock Exchange and trades under the symbol RAY. Company information may be accessed on our Internet website http://www.raytech.com.
RAYTECH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
-----------------------------------------------
(000's omitted, except share data)
Comparative results are as follows:
For the 13 Weeks Ended
June 29, 2003 June 30, 2002
------------- -------------
(Unaudited)
Net Sales $ 54,093 $ 55,305
Net (loss) income $ (1,539) $ 1,070
Basic (loss) earnings per share:
Earnings per share $ (.04) $ .03
Weighted average shares 41,733,702 41,562,216
Diluted (loss) earnings per share:
Earnings per share $ (.04) $ .03
Weighted average shares 41,733,702 41,687,117
For the 26 Weeks Ended
June 29, 2003 June 30, 2002
------------- -------------
(Unaudited)
Net Sales $109,828 $108,014
Net (loss) income $ (1,612) $ 2,400
Basic earnings per share:
Earnings per share $ (.04) $ .06
Weighted average shares 41,717,628 41,545,368
Diluted earnings per share:
Earnings per share $ (.04) $ .06
Weighted average shares 41,717,628 41,599,523