MascoTech, Inc. Announces Improved Third Quarter Earnings
6 November 1997
MascoTech, Inc. Announces Improved Third Quarter Earnings
TAYLOR, Mich., Nov. 6 -- Sales of the Company's core
transportation-related businesses increased approximately three percent to
$222 million in the third quarter of 1997 from $215 million in 1996.
The Company's reported consolidated sales for the 1996 third quarter of
approximately $291 million include the results of certain businesses which
have been disposed, as previously announced.
Income in the third quarter of 1997 was $38.7 million or $.70 per common
share, compared with $16.2 million or $.28 per common share in the comparable
period in 1996. Income in 1997 included a pre-tax gain of approximately
$46 million related to the transfer of the Company's equity holdings in Emco
Limited to Masco Corporation , as previously announced. This gain
was partially offset by costs, of approximately $14 million pre-tax,
associated with a plant closure, the Company's share of a special charge
recorded by an equity affiliate and other expenses. Excluding the gain and
unusual costs, net income in the third quarter of 1997 would have been $19.2
million or $.37 per common share. Third quarter 1997 income was also
negatively affected by costs and expenses as a result of a strike at one of
the Company's manufacturing facilities and higher than anticipated product
start-up costs. The negative impact of these costs was partially offset by
gains from the Company's marketable securities portfolio.
We believe that our core business focus, combined with our strong product
and technological capabilities, have positioned MascoTech for
future growth and improved financial performance and, based upon current
economic trends, should result in record earnings in 1997.
Headquartered in Taylor, Michigan, MascoTech's transportation-related
businesses include metal-worked components primarily for vehicle engine and
drivetrain applications and automotive aftermarket products.
Visit MascoTech's website at http://www.mascotech.com. MascoTech's press
releases are also available through Company News On-Call by fax, 800-758-5804,
extension 535375, or http://www.prnewswire.com.
MASCOTECH, INC. ANNOUNCES IMPROVED THIRD QUARTER EARNINGS
Three Months Ended Nine Months Ended
September 30 September 30
1997 1996 1997 1996
Net Sales $222,030 $290,790 $688,510 $1,009,770
Costs and Expenses:
Cost of Sales (187,680) (235,210) (543,870) (834,820)
Selling, General and
Administrative
Expenses (22,730) (29,100) (68,280) (100,460)
Charge for Disposition
of Businesses,
Net --- --- --- (31,520)
Operating Profit 11,620 26,480 76,360 42,970
Gain on Disposition of
Equity Affiliate 46,160 --- 46,160 ---
Other Income, Net 6,000 5,990 36,140 6,970
Income Before Income Taxes and
Cumulative Effect of
Accounting Change 63,780 32,470 158,660 49,940
Income Taxes 25,120 13,080 62,690 26,470
Income Before Cumulative
Effect of Accounting
Change 38,660 19,390 95,970 23,470
Cumulative Effect of Accounting
Change --- --- --- 11,700
Net Income $38,660 $19,390 $95,970 $35,170
Preferred Stock
Dividends --- $3,240 $6,240 $9,720
Earnings Attributable to
Common Stock $38,660 $16,150 $89,730 $25,450
Earnings Per Common Share:
Primary:
Income Before
Accounting Change $.80 $.28 $1.95 $.24
Accounting Change --- --- --- .21
Earnings Attributable to
Common Stock $.80 $.28 $1.95 $.45
Fully Diluted:
Income Before
Accounting Change $.70 $.28 $1.74 $.24
Accounting Change --- --- --- .21
Earnings Attributable to
Common Stock $.70 $.28 $1.74 $.45
Amounts in thousands except per share data.
SOURCE MascoTech