MascoTech, Inc. Announces Record Second Quarter Earnings Per Share
30 July 1997
MascoTech, Inc. Announces Record Second Quarter Earnings Per Share
TAYLOR, Mich., July 30 -- MascoTech's earnings per share for
the second quarter ended June 30, 1997 were the highest for any second quarter
in the Company's history. Income after preferred stock dividends in the
second quarter of 1997 was approximately $21.7 million or a record $.46 per
common share.
Sales of the Company's core transportation-related businesses increased
approximately five percent to $233 million in the second quarter of 1997 from
$223 million in 1996. The Company's reported consolidated sales for the 1996
second quarter of approximately $345 million include the results of certain
businesses which have been disposed, as previously announced.
The Company's results in the second quarter of 1997 were negatively
impacted by work stoppages at certain North American vehicle manufacturers
that resulted in reduced sales volume and profits. The negative impact of the
work stoppages on the Company's results for the second quarter was offset by
gains from the Company's marketable securities portfolio of approximately $.04
per common share.
In the second quarter of 1996, net loss after preferred stock dividends
was $9.9 million or $.18 per common share, including losses relating to the
disposition of MascoTech Stamping Technologies, Inc. (MSTI). Excluding the
losses related to MSTI, earnings per common share would have been
approximately $.29 for the second quarter of 1996.
We believe that our core business focus, combined with our strong product
and technological capabilities, have positioned MascoTech for future growth
and improved financial performance and, based upon current economic trends,
should result in record earnings in 1997.
Headquartered in Taylor, Michigan, MascoTech's transportation-related
businesses include metal-worked components primarily for vehicle engine and
drivetrain applications and automotive aftermarket products.
Visit MascoTech's website at http://www.mascotech.com. MascoTech's press
releases are also available through Company News On-Call by fax, 800-758-5804,
extension 535375, or http://www.prnewswire.com.
MASCOTECH, INC. ANNOUNCES RECORD SECOND QUARTER EARNINGS PER SHARE
Three Months Ended Six Months Ended
June 30 June 30
1997 1996 1997 1996
Net Sales $233,040 $345,060 $466,480 $718,980
Cost of Sales (179,050) (287,130) (356,190) (599,610)
Selling, General
and Administrative
Expenses (22,840) (33,830) (45,550) (71,360)
Charge for Disposition
of Businesses, Net --- (29,520) --- (31,520)
Operating Profit (Loss) 31,150 (5,420) 64,740 16,490
Other Income, Net 9,650 5,000 30,140 980
Income (Loss) Before
Income Taxes and
Cumulative Effect
of Accounting Change 40,800 (420) 94,880 17,470
Income Taxes 16,150 6,240 37,570 13,390
Income (Loss) Before
Cumulative Effect
of Accounting Change 24,650 (6,660) 57,310 4,080
Cumulative Effect of
Accounting Change --- --- --- 11,700
Net Income (Loss) $24,650 $(6,660) $57,310 $15,780
Preferred Stock
Dividends $3,000 $3,240 $6,240 $6,480
Earnings (Loss)
Attributable to
Common Stock $21,650 $(9,900) $51,070 $9,300
Earnings (Loss) Per
Common Share:
Primary:
Income (Loss) Before
Accounting Change $ .50 $(.18) $1.16 $(.04)
Accounting Change -- --- -- .20
Earnings (Loss)
Attributable to
Common Stock $ .50 $(.18) $1.16 $ .16
Fully Diluted:
Income (Loss) Before
Accounting Change $ .46 $(.18) $1.04 $(.04)
Accounting Change -- --- -- .20
Earnings (Loss)
Attributable to
Common Stock $ .46 $(.18) $1.04 $ .16
Income in the second quarter of 1996 would have been approximately $16
million or $.29 per common share after preferred stock dividends and excluding
the losses related to the disposition of MascoTech Stamping Technologies, Inc.
Amounts in thousands except per share data.
SOURCE MascoTech, Inc.