Intermet Reports Sales and Earnings for Q3
16 October 1997
Intermet Reports Record Sales and Earnings for Third Quarter
DETROIT, Oct. 16 -- Intermet Corporation
announced today third quarter 1997 sales of $190 million and net income of
$7.4 million or $0.29 earnings per share -- a third quarter earnings record.
These numbers compare to third quarter 1996 sales of $130 million and net
income of $6.8 million or $0.27 per share.
Sales for the period were 10% lower than the second quarter 1997 and net
income 34% lower. The third quarter is traditionally Intermet's lowest
revenue quarter due to customer summer vacations and vehicle model changeover.
Revenues were higher than previous years due to the Sudbury acquisition.
Absent the acquisition, third quarter sales would have been down about 6%,
primarily due to lower production rates of certain models at Chrysler and
unfavorable exchange rates related to the German operations.
Record sales and earnings were posted for the first nine months of 1997.
Sales for the nine-month period were $610 million and net earnings were $29.4
million or $1.15 EPS compared to $408 million, $26.4 million and $1.04
respectively in the first nine months of 1996.
The company completed a secondary offering of 3,450,000 Intermet common
shares in August on behalf of selling shareholders, George W. Mathews, Jr. and
family. Mr. Mathews was the company founder and chairman and CEO until
November, 1994. The Mathews' family controlled 20.9% of Intermet's common
stock before the offering and 7.2% after the offering. There was no dilution
as the total number of shares outstanding remained the same and the company
received no monetary benefit.
The board of directors approved an amendment to the "Shareholder
Protection Rights Agreement". The amendment effectively allows institutional
investors, under the Securities Exchange Act, SEC Rule 13d-1(b)(l)(ii), who do
not have any control intent, to own up to 14.9% of the outstanding stock.
The Intermet board of directors approved a quarterly dividend of $0.04 per
share, payable December 30, 1997, to shareholders of record as of December 1,
1997.
Detroit-based Intermet Corporation and its subsidiaries design and
manufacture precision iron and aluminum castings for automotive and industrial
equipment manufacturers worldwide, produce precision machined components,
cranes and specialty service vehicles, and provide custom coating
applications. Intermet has more than 6,400 employees at twenty-three operating
locations in North America and Europe.
To participate in a conference call to be held at 3:30 p.m. E.D.T. on
Thursday, October 16, call 800-288-8967 and ask for the Intermet Press Release
conference.
A digitized replay of the conference call will be available from 9:30 p.m.
E.D.T., October 16, 1997 to 11:59 p.m. E.D.T., October 23, 1997. The
telephone number for the digitized replay is: U.S. -- 800-475-6701;
International -- 320-365-3844. The access code for the replay is: 360026.
Intermet Corporation Condensed Consolidated Income Statements
(In Thousands, Except Per Share Data)
Three Months Ended (unaudited) Nine Months Ended (unaudited)
September 30, September 30, September 30, September 30,
1997 1996 1997 1996
Net sales $189,535 $130,279 $609,924 $408,219
Cost of sales 167,472 112,449 532,010 346,335
Gross profit 22,063 17,830 77,914 61,884
Operating
expenses 7,327 5,558 21,873 15,206
Operating profit 14,736 12,272 56,041 46,678
Other income
(expense) net (3,733) (282) (10,850) (1,318)
Income tax
provision (3,647) (5,204) (15,748) (18,950)
Net income $ 7,356 $ 6,786 $29,443 $26,410
Earnings per
share $ 0.29 $ 0.27 $ 1.15 $ 1.04
Weighted average
shares
outstanding 25,767 25,427 25,678 25,472
Intermet Corporation Condensed Consolidated Balance Sheets (In Thousands)
September 30, December 31,
1997 1996
(unaudited)
Assets:
Cash and cash equivalents $ 5,273 $ 23,485
Other current assets 184,644 165,809
Property plant and equipment (net) 225,918 222,782
Other non-current assets 109,498 114,236
Total assets $525,333 $ 526,312
Liabilities and shareholders' equity:
Current liabilities $ 114,793 $ 171,368
Long-term debt 183,018 149,477
Other long-term liabilities 59,807 61,528
Total liabilities 357,618 382,373
Minority interest 2,337 2,837
Shareholders' equity 165,378 141,102
Total liabilities and shareholders' equity $ 525,333 $ 526,312
SOURCE Intermet Corporation