Methode Electronics, Inc. Announces Record First Quarter Sales and Earnings
26 August 1997
Methode Electronics, Inc. Announces Record First Quarter Sales and Earnings
CHICAGO, Aug. 26 -- Methode Electronics, Inc.
achieved record first quarter sales and earnings for the three months ended
July 31, 1997. Sales increased 16 percent to $91,898,000 from $78,966,000 and
net income was up 14 percent to $9,156,000 from $8,010,000 last year.
Earnings rose to $0.26 per share, up from $0.23 per share in the first quarter
of fiscal 1997.
William J. McGinley, Chairman, said, "Our first quarter record earnings
included for the first time the results of two of our recent acquisitions.
Merit-Malta Methode, a European automotive component supplier, was purchased
in late February, and Adam Technologies, a broad line electronic connector
supplier, was acquired as of the beginning of May. We are pleased with the
initial performance of these two new-to-Methode ventures and expect continued
positive impact on results as well as future strategic plans.
"Also during the quarter we experienced a surge of business in our
worldwide dataMate 'smart interconnect' business. Methode holds a leadership
position in this important product category which during the quarter enjoyed
an increase in sales and earnings of more than 40 percent as compared to a
year ago. We continue to grow dataMate sales by expanding our line of
terminators and adapters and, of comparable impact, adding new solutions for
major international telecommunication customers.
"Sales of fiber optic interconnects and cable assemblies grew by
30 percent over last year as the market continues to demand increased
communications speed and capacity over longer distances.
"On the downside, first quarter results were reduced as the result of a
decline in sales of Network Buss products to the mainframe computer industry
because of technological change and elimination of the high power requirements
in giant processors. The expected replacement of this business with power
interconnects for electric cars was pushed out from the original mandated 1998
California state quotas for zero emission until the year 2001. We have a
variety of new bus bar opportunities for use with data hubs, information
storage and retrieval systems, and network routers; very large motors for
paper mills, drilling and mining equipment, etc.; backplanes for computers and
telecommunications equipment; and bay stations for cellular phones and pagers.
"Sales of automotive interconnect devices and controls are significant to
Methode and declined about 4 percent during the first quarter, which usually
has been our weakest three-month period. As of today, automotive releases for
the second quarter are running about even with releases for the comparable
time frame last year. Historically, Methode's automotive sales are stronger
in the second quarter than in the first quarter of our fiscal year," Chairman
McGinley concluded.
Methode Electronics, Inc.
Financial Highlights
Three Months Ended July 31,
1997 1996
Net Sales $91,898,000 $78,966,000
Other income 1,132,000 1,379,000
Cost of products sold 66,775,000 57,641,000
Selling and administrative
expenses 12,164,000 10,089,000
Income before income taxes 14,091,000 12,615,000
Income taxes 4,935,000 4,605,000
Net income 9,156,000 8,010,000
Earnings per Common Share $0.26 $0.23
Average number of Common
Shares outstanding 35,298,000 35,171,000
SOURCE: Methode Electronics, Inc.