Simpson Industries Reports Results For the Third Quarter Ended September 30, 1997
16 October 1997
Simpson Industries Reports Results For the Third Quarter Ended September 30, 1997
PLYMOUTH, Mich., Oct. 16 -- Simpson Industries, Inc.
reported today that net sales in the quarter were $112,327,000,
compared to $98,228,000 in the third quarter of 1996. The $14,099,000
increase was due largely from the inclusion of the operating results of the
recent acquisition of the vibration attenuation business of Holset
Engineering, Ltd, from Cummins Engine Co., Inc. and the impact of new program
launches undertaken since the beginning of the year.
Net loss for the third quarter, which included a one time pre-tax charge
of $8,769,000 ($5,568,000 after-tax or $0.31 per share) in connection with the
previously announced consolidations of the Jackson and Gladwin facilities,
were $3,337,000 or a negative $0.18 per share. Net earnings in the third
quarter of 1996 were $3,443,000 or $0.19 per share.
Production from both the Gladwin and Jackson, Michigan plants is being
consolidated at other Simpson facilities, and the company expects to generate
annualized savings of approximately $5.5 million before taxes beginning in
1998.
For the nine months, net sales were $328,475,000 up 6% from $309,698,000
in the comparable 1996 period. Net earnings were $6,468,000 or $0.36 per
share compared to $13,371,000, or $0.74 per share in the first nine months of
1996.
"This has been a watershed quarter for Simpson as it is the first quarter
to include the operations of our acquisition, as well as consolidating the
company's manufacturing facilities in the U.S.," said Roy E. Parrott,
president and chief executive officer. "The integration of our European and
Asian operations is on track. We are now able to compete for new business
with a broader product line and worldwide production facilities for current
and potential customers--both domestic and global."
Simpson Industries supplies powertrain and chassis products to original
equipment manufacturers in the worldwide automotive and medium and heavy duty
diesel engine markets. Simpson's products are focused in four groups: noise,
vibration and harshness; wheel-end and suspension; modular engine assemblies
and high-precision machined components. Simpson's manufacturing units are
located in the United States, Canada, Mexico, Brazil, England, France, Spain
and Korea.
To receive a copy of this and other Simpson press releases by fax, please
call Company News-On-Call at 800-758-5804 - extension 107165, or you can
access the information via the Internet at http://www.prnewswire.com./
Consolidated Statements of Operations
(Unaudited)
(In thousands, except
per share data)
Nine Months Ended Three Months Ended
September 30 September 30
1997 1996 1997 1996
NET SALES $328,475 $309,698 $112,327 $98,228
Cost of products sold 295,614 276,131 103,322 89,310
GROSS PROFIT 32,861 33,567 9,005 8,918
Administrative and selling 9,538 9,357 3,315 3,158
Plant Closing Costs 8,769 - - - 8,769 - - -
OPERATING EARNINGS (loss) 14,554 24,210 (3,079) 5,760
Interest and other income - net 732 851 206 692
Interest expense (5,094) (4,045) (2,377) (1,321)
EARNINGS (loss) BEFORE INCOME TAXES 10,192 21,016 (5,250) 5,131
Income taxes (loss) 3,724 7,645 (1,913) 1,688
NET EARNINGS $6,468 $13,371 $(3,337) $3,443
NET EARNINGS (loss) PER SHARE $0.36 $0.74 $(0.18) $0.19
Cash dividends per share $0.30 $0.30 $0.10 $0.10
Average number of common and
common equivalent shares 18,172 18,103 18,190 18,117
Note: Depreciation & Amortization $17,032 $15,343 $6,476 $5,151
SOURCE Simpson Industries, Inc.