Standard Products Reports Fiscal 1998 First Quarter Results
21 October 1997
Standard Products Reports Fiscal 1998 First Quarter Results
DEARBORN, Mich., Oct. 21 -- The Standard Products Co.
today announced results for its first quarter of fiscal 1998,
ended September 30, 1997. Net income for the quarter was $2.8 million, or
$0.17 per share of common stock, on sales of $246.2 million. This compares
with net income of $1.4 million, or $0.08 per share, on sales of $265.6
million in the first quarter a year ago.
"This year's first quarter performance demonstrates our ability to deliver
improved results despite a seven percent decrease in sales volume," said Ron
Roudebush, chief executive officer. "The improved performance is due
primarily to the fact that our Brazilian operation generated a profit for the
first quarter of fiscal 1998, compared with a loss in last year's first
quarter. This improvement was offset by results at our subsidiary in England
and our NISCO joint venture, which were significantly lower than last year."
First quarter sales for the Company's Transportation Equipment segment
were $213.3 million, a 7.2 percent decrease from 1997 first quarter sales of
$229.8 million. In North America, net sales declined by 12.8 percent from
$140.2 million to $122.2 million. Decreased production of the Ford
Taurus/Sable, Chrysler minivan, Jeep(R) Cherokee and Dodge/Plymouth Neon
primarily accounted for the North American sales decline.
The Company's European automotive group saw sales decrease by 6.9 percent
from the same period last year, going from $50.7 million in fiscal 1997 to
$47.2 million in fiscal 1998. This decline resulted primarily from currency
translation of the French franc. Sales in Brazil partially offset these
declines, as first quarter fiscal 1998 sales increased by over 30 percent
compared with the same period in fiscal 1997.
Sales of the Company's Holm Industries subsidiary were essentially flat
year over year during the first quarter. The Company's Tread Rubber segment
experienced a drop in sales of 8.3 percent compared with the first quarter of
last year. This decline related to lower equipment sales to Treadco, Inc.
compared with fiscal 1997, when the process of converting Treadco locations to
Oliver licensees resulted in higher equipment sales. This conversion is now
complete.
Standard Products manufactures sealing, trim and vibration control systems
for the automotive original equipment industry in North and South America and
Europe. Its Holm Industries subsidiary produces seals for residential
refrigerators, freezers, doors and windows. Its Oliver Rubber subsidiary
manufactures tread rubber and equipment for the truck-tire retread industry.
NOTE: Jeep(R) is a registered trademark of Chrysler Corporation.
THE STANDARD PRODUCTS COMPANY
Consolidated Earnings Summary (Unaudited) (000 omitted)
Three Months
Periods Ended Sept. 30 1997 1996
Net sales $246,173 $265,611
Costs and expenses:
Cost of goods sold 218,936 240,319
Selling, general and
administrative expenses 17,323 17,303
Interest expense 2,956 3,505
Other (income) expense, net 2,386 (959)
Income before taxes on income $4,572 $5,443
Provision for taxes on income 1,761 4,046
Net income $2,811 $1,397
Earnings per common share $0.17 $0.08
Average shares outstanding 16,826 16,792
SOURCE Standard Products Co.