Walbro Corporation Reports Third Quarter Results
16 October 1997
Walbro Corporation Reports Third Quarter Results
CASS CITY, Mich., Oct. 16 -- L.E. Althaver, Chairman and
Chief Executive Officer, Walbro Corporation , reported sales of
$146,523,000 for the third quarter ended September 30, 1997, compared with
$132,545,000 for the third quarter of 1996.
The Company reported a net loss of $1,186,000 for the third quarter of
1997 compared with net income of $2,346,000 for the same period in 1996. The
Company posted a net loss per share of $.14 for the third quarter of 1997,
compared with net income of $.27 per share for the same period in 1996.
Average shares outstanding for the third quarter were 8,721,761 in 1997 and
8,645,041 in 1996.
"Shipments of plastic fuel tanks from Walbro's facilities in Indiana and
Connecticut were lower than expected during the third quarter," Althaver said.
"In addition, launch costs for new tank programs, which were higher than
anticipated throughout the first half of the year, continued at high levels
during the third quarter."
"Shipments of carburetors in China were down significantly during the
quarter, as manufacturers of two-wheeled vehicles temporarily reduced
production levels to control their inventory levels," he said.
"Walbro's European fuel tank operations saw reduced shipments due to weak
vehicle sales in several key markets during the third quarter. In addition,
European and Japanese operations continued to be negatively affected by the
strong dollar during the third quarter," the Walbro chief executive noted.
"On the positive side, shipments of automotive fuel pumps were strong
during the quarter, while sales of small engine carburetors, ignition systems
and aftermarket products increased in the period," Althaver said.
"In addition, profitability at Walbro's new fuel tank facility in Brazil
continued to improve during the quarter as production levels increased," he
added.
"While third quarter results did not meet our expectations, we anticipate
a return to profitability in the fourth quarter," Althaver said.
"Several major fuel tank programs are now entering production, and
additional new programs are scheduled for the coming months. As these new
programs ramp up, the Company's heavy investment in personnel and facilities
to support this new business, which has had a substantial effect on earnings
in recent quarters, will begin to pay off with improved earnings," Althaver
said.
Walbro Corporation is a designer and manufacturer of precision fuel
systems and products for automotive and small engine markets. Walbro
Corporation is headquartered in Cass City, Michigan, and has subsidiaries and
joint ventures throughout the world, including North and South America, Europe
and Asia. Walbro common stock is traded on the Nasdaq National Market under
the symbol WALB.
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Actual results may
differ materially from anticipated results due to certain risks and
uncertainties, including but not limited to general economic conditions in the
markets in which Walbro operates, fluctuations in the production of vehicles
for which Walbro is a supplier, labor disputes involving Walbro or its
significant customers, risks associated with conducting business in foreign
countries and other risks detailed from time to time in the Company's
Securities and Exchange Commission filings.
WALBRO CORPORATION
(in thousands, except share data)
Three Months Ended Nine Months Ended
September 30 September 30
1997 1996 1997 1996
Net Sales $146,523 $132,545 $454,384 $440,501
Net Income (Loss) (1,186) 2,346 2,360 11,704
Net Income (Loss)
Per Share (.14) .27 .27 1.35
Average Shares
Outstanding 8,721,761 8,645,041 8,684,595 8,642,598
EBITDA* $13,083 $11,733 $46,001 $45,932
* Earnings before interest and taxes, plus depreciation and amortization.
SOURCE Walbro Corporation