Oilgear Reports Third Quarter Results
MILWAUKEE--Nov. 1, 20037, 2003--The Oilgear Company today reported sales and earnings for the third quarter ended September 30, 2003.For the third quarter of 2003, Oilgear reported net sales of $18,785,000, compared to sales of $18,092,000 for the same period in 2002. The company reported a net loss of $583,000 or $0.30 per share for the third quarter of 2003, compared to a net loss of $1,279,000 or $0.66 per share for the same period in 2002.
Net sales for the first three quarters of 2003 were $59,609,000, compared to sales of $57,425,000 for the same period in 2002. The net loss was $1,729,000 or $0.88 per share for the first three quarters of 2003, compared to a net loss of $2,441,000 or $1.25 per share for the same period in 2002.
Orders for the third quarter of 2003 were $18,041,000, compared to $28,703,000 for the same period in 2002. Orders in 2002 included the impact of an $11,000,000 European order received in September 2002 which distorts the comparison. Orders for the first three quarters of 2003 were $62,712,000, compared to $67,840,000 in the same period in 2003. Backlog at September 30, 2003 has increased 10.5% from the beginning of the year to $32,665,000.
"Although the domestic economy recorded a strong surge in the third quarter, these improvements were not yet reflected in shipments in the fluid power industry. In the third quarter 2003, domestic shipments of hydraulic equipment were down 1.7% from the third quarter of 2002 and shipments for the first nine months of 2003 were down 4.8%, according to data provided by the National Fluid Power Association. A bright spot in this challenging period is that we continue to believe we have not lost market share," said David A. Zuege, president and chief executive officer.
"Economists who follow our industry are forecasting a turnaround beginning in the fourth quarter of this year and there is some evidence to support these forecasts. Industry statistics indicate that domestic hydraulic orders for the third quarter of 2003 increased by 4.1% over the third quarter of 2002. Oilgear's third quarter domestic orders rose 11.7% over the third quarter of 2002. Based on these facts, our quotation levels and the number of projects under discussion, we are cautiously optimistic that our industry may experience a modest recovery extending into 2004," said Zuege.
A leader in the fluid power industry, The Oilgear Company provides advanced technology in the design and production of unique fluid power components and electronic controls. The company serves customers in the primary metals, machine tool, automobile, petroleum, construction equipment, chemical, plastic, glass, lumber, rubber and food industries. Its products are sold as individual components or integrated into high performance applications.
The Oilgear Company
Consolidated Condensed Operating Statement
(Unaudited)
Three Months Ended September 30,
--------------------------------
2003 2002
---- ----
Net sales $ 18,785,000 $ 18,092,000
Cost of sales 14,301,000 14,874,000
--------------------------------
Gross profit $ 4,484,000 $ 3,218,000
Operating expenses 4,563,000 4,378,000
--------------------------------
Operating income (loss) $ (79,000) $ (1,160,000)
--------------------------------
Interest expense 323,000 358,000
Other income (11,000) 94,000
--------------------------------
Earnings (loss) before income taxes (413,000) (1,424,000)
Income taxes 177,000 9,000
Net earnings from minority interest (7,000) (154,000)
--------------------------------
Net earnings (loss) $ (583,000) $ (1,279,000)
================================
Basic earnings (loss) per share of common
stock $ (0.30) $ (0.66)
================================
Diluted earnings (loss) per share of
common stock $ (0.30) $ (0.66)
================================
Basic weighted average outstanding shares 1,955,000 1,953,000
Diluted weighted average outstanding
shares 1,955,000 1,953,000
Nine Months Ended September 30,
--------------------------------
2003 2002
---- ----
Net sales $ 59,609,000 $ 57,425,000
Cost of sales 45,796,000 45,645,000
--------------------------------
Gross profit 13,813,000 11,780,000
Operating expenses 14,351,000 13,323,000
--------------------------------
Operating income (loss) $ (538,000) $ (1,543,000)
--------------------------------
Interest expense 987,000 986,000
Other income 213,000 251,000
--------------------------------
Earnings (loss) before income taxes $ (1,312,000) $ (2,278,000)
Income taxes 389,000 208,000
Net earnings from minority interest 28,000 (45,000)
--------------------------------
Net earnings (loss) $ (1,729,000) $ (2,441,000)
================================
Basic earnings (loss) per share of common
stock $ (0.88) $ (1.25)
================================
Diluted earnings (loss) per share of
common stock $ (0.88) $ (1.25)
================================
Basic weighted average outstanding shares 1,955,000 1,950,000
Diluted weighted average outstanding
shares 1,955,000 1,950,000
The Oilgear Company
Consolidated Condensed Balance Sheet
(Unaudited)
September 30, December 31,
2003 2002
--------------------------------
ASSETS
Current Assets
Cash and cash equivalents $ 5,036,000 $ 4,126,000
Accounts receivable 14,603,000 14,948,000
Inventories 22,161,000 21,556,000
Other current assets 5,384,000 3,487,000
--------------------------------
Total current assets $ 47,184,000 $ 44,117,000
--------------------------------
Net property plant and equipment 20,033,000 21,149,000
Other assets 2,023,000 1,761,000
--------------------------------
$ 69,240,000 $ 67,027,000
================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Current debt $ 4,723,000 $ 2,209,000
Accounts payable 7,364,000 5,909,000
Other current liabilities 9,007,000 9,310,000
--------------------------------
Total current liabilities $ 21,094,000 $ 17,428,000
--------------------------------
Long-term debt 20,322,000 20,986,000
Unfunded employee benefit costs 22,667,000 22,868,000
Other non-current liabilities 832,000 1,027,000
--------------------------------
Total liabilities $ 64,915,000 $ 62,309,000
--------------------------------
Minority interest in consolidated
subsidiary 886,000 858,000
Shareholders' equity 3,439,000 3,860,000
--------------------------------
$ 69,240,000 $ 67,027,000
================================
