Hawk to Explore Strategic Alternatives for its Precision Components Segment
CLEVELAND, Oct. 26, 2006 -- Hawk Corporation (AMEX:HWK) announced today that it has retained Jefferies and Company, Inc. to act as its exclusive financial advisor to assist the Company in exploring the possible sale of its precision components group. That business segment of the Company manufactures and sells powder metal precision components and metal injection molded components used in industrial, consumer and other applications.
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Ronald E. Weinberg, Chairman and CEO of Hawk stated, "Our precision components group is an excellent business with very capable leadership. Our exploration of a possible sale is based on focusing on the many growth opportunities available to us in our friction products and performance racing segments. Our friction business is examining initiatives on a global basis and across many market segments and we intend to fully explore and execute against them. Also, we are mindful of capital efficiency and its role in maximizing shareholder value."
Mr. Weinberg added, "At this point in time, we are exploring alternatives and there is no assurance that any discussions will result in a transaction. We do not intend to further update our disclosure during the course of this process until and unless our Board of Directors approves a specific transaction."
The Company
Hawk Corporation is a leading worldwide supplier of highly engineered products. Its friction products group is a leading supplier of friction materials for brakes, clutches and transmissions used in airplanes, trucks, construction and mining equipment, farm equipment, recreational and performance automotive vehicles. Through its precision components group, the Company is a leading supplier of powder metal and metal injected molded components used in industrial, consumer and other applications, such as pumps, motors and transmissions, lawn and garden equipment, appliances, small hand tools and trucks. The Company's performance racing group manufactures clutches and gearboxes for motorsport applications and performance automotive markets. Headquartered in Cleveland, Ohio, Hawk has approximately 1,800 employees at 17 manufacturing, research, sales and administrative sites in 5 countries.
Forward Looking Statements
This press release includes forward-looking statements regarding Hawk's exploring the possible sale of its precision components group and growth opportunities in Hawk's friction products and performance racing segments. These forward-looking statements are based upon management's expectations and beliefs concerning future events. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of the Company that could cause actual results to differ materially from such statements. Actual results and events may differ significantly from those projected in the forward-looking statements. Hawk cannot provide any assurance when a transaction involving the precision components group will occur, or if a transaction will occur at all. Reference is made to Hawk's filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2005, its quarterly reports on Form 10-Q, and other periodic filings, for a description of factors that could cause actual results to differ materially from those in the forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
Hawk Corporation is online at: www.hawkcorp.com
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